Markets extended their losing streak for a fourth consecutive session on Wednesday, as benchmark indices closed sharply lower amid concerns about the Indian rupee, which hit a record low of ₹88.8 against the dollar, and unease over potential changes to the US H-1B visa policy. The BSE Sensex fell by 386.47 points or 0.47% to close at 81,715.63, while the Nifty 50 declined by 112.60 points or 0.45% to settle at 25,056.90.
The breadth of the broader market reflected this weakness, with 2,568 stocks declining compared to 1,604 advancing on the BSE, and 344 stocks within the Nifty 500 closing in negative territory. Notably, the Nifty Midcap 100 decreased by 0.98% and the Smallcap 100 fell by 0.67%.
Sectoral Pressure: Realty, Auto, IT Declines; FMCG Rises
Among Nifty 50 stocks, Power Grid Corporation topped the gainers’ list with a rise of 1.68% to ₹293.45. It was followed by Hindustan Unilever, which gained 1.36% to ₹2,556.60, and NTPC, which saw a 1.31% increase to ₹347.50. Other gainers included Maruti Suzuki (up 0.98% to ₹16,254.00) and JSW Steel (up 0.93% to ₹1,149.00).
In contrast, Tata Motors emerged as the biggest loser, dropping 2.62% to ₹683.00. Other significant losers included Bharat Electronics Limited (down 2.16% to ₹395.70), Reliance Jio Infocomm (down 2.02% to ₹306.25), Adani Enterprises (down 1.96% to ₹2,624.00), and Wipro (down 1.90% to ₹244.88).
“Profit booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and expectations for Q2 earnings,” stated Vinod Nair, Head of Research at Geojit Investments Limited. He noted that IT stocks were underperforming due to increased H-1B fees, and ongoing trade negotiations were contributing to cautious investor sentiment.
Sectoral performance largely skewed negative, with the Nifty Realty index leading the decline at 2.5%, followed by a 1.2% fall in the Auto index. The IT, banking, and financial services indices each dropped between 0.6% and 1%. Conversely, the Nifty FMCG index closed 0.2% higher, becoming the only sectoral index in positive territory.
Rupee Hits Record Low; FII Selling Persists
The rupee’s continued weakness, contributing to record lows, only intensified concerns in the market. “The rupee traded at 88.67, up 0.03 paise, while the dollar index remained steady near 97.60. Despite minor gains, the rupee is facing resistance due to delays in the India-US trade deal and ongoing FII sales, maintaining overall pressure. We anticipate a trading range for the rupee between 88.45 and 89.00,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Foreign institutional investors (FIIs) have continued their selling trend, with net outflows amounting to ₹6,461 crore over the last two sessions, further dampening market sentiment. “High valuations in India paired with a slowdown in earnings growth are leading FIIs to reduce their positions,” Nair added.
Gold Prices Ease amid Profit Booking
Gold prices experienced a correction after a strong rally, easing by ₹500 to a trading value near ₹1,13,300. “Despite the decline, prices remain in overbought territory, with overall sentiment still positive. We expect volatility, with trading anticipated between ₹1,12,000 and ₹1,14,000,” noted Trivedi.
Cautious Nifty Outlook; Trading Range Between 25,000 and 25,500
Analysts remained cautious regarding the near-term outlook. “The market has faced consistent selling pressure for four sessions, with the Nifty forming a pattern of lower highs and lower lows. A decisive move below 25,050 could indicate further downside towards 24,920,” warned Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking.
Looking ahead, market participants are keenly awaiting upcoming US economic data, including GDP figures, new and existing home sales, and the Core PCE price index, which may influence Federal Reserve policy and global market sentiment. Analysts project continued volatility in the near term, with the Nifty expected to trade within the range of 25,000 to 25,500 as the market awaits clarity on India-US trade negotiations and corporate earnings for Q2.
Published on September 24, 2025.
