Stock Market Update: Heavy Selling in Midcap and Smallcap, Nifty 50 Holds 25,000; Sensex Breaks 82,000

Indian equity markets witnessed sharp declines today, with the real carnage seen in the midcap and smallcap segments. The broader market weakness was evident as benchmark indices also slipped, though Nifty 50 managed to hold the crucial 25,000 level.

Nifty Bank Retraces to 55,121 Levels

Nifty Bank showed notable weakness, retracing close to its 20-day exponential moving average (EMA) at 55,121. Analysts believe a correction up to 55,000 was logical and expected, but if this level breaks, it could trigger deeper downside pressure. The index closed nearly 400 points lower, erasing yesterday’s gains.

Sensex Falls Below 82,000

The Sensex breached the crucial 82,000 mark and closed near its 20-day EMA, signaling further downside risks if the support is broken. If the slide continues, the next major support lies around 80,000.

Nifty 50 Weakens After Strong Rally

Nifty 50 ended 112 points lower, yet managed to hold above 25,000. The index had rallied for over 12 consecutive sessions in the past 15 trading days, making today’s correction more of a “profit booking” phase. Analysts caution that the 25,000–25,150 zone remains a no-trade range, with bullish momentum likely only if the index breaks above the immediate trendline resistance.

Market Breadth Significantly Weak

The advance-decline ratio was extremely negative throughout the session. For every advancing stock, two or more were in decline, highlighting broad-based selling pressure.

Global Cues Remain Mixed

Globally, the Dow Jones was trading around 151 points higher, while the Nasdaq and S&P 500 were largely flat. The GIFT Nifty hovered near 25,102, showing stability just above the 25,000 mark.

Top Gainers

Tata Investment Corp. – continued its strong rally with fresh buying.
Mindspace Business Parks REIT – gained 8.5%.
Sirma SGS – saw strong momentum.
Deepak Fertilizers – added to the gainers list.

Top Losers

Adani Power – plunged 11% amid continued volatility in the group stocks.
Adani Total Gas (ATGL) – also among top laggards.
Balrampur Chini, Godrej Properties – extended losses.

Sector & Stock Highlights

Outperformers (last 1 week): Tata Investment (+26%), Netweb (+20%), Anant Raj (added fresh positions).
Laggards (last 1 week): Stick (-12%), Cohance Life Sciences (-9%), Balrampur Chini, Coforge, Inox Green Energy.
Nifty 50 Leaders Today: Power Grid, NTPC, Tata Consumers, Maruti.
Major Losers: Tata Motors (-2.5%), Adani Enterprises, Wipro, IndusInd Bank.

Institutional Activity

Foreign Institutional Investors (FIIs) turned heavy sellers again, outweighing Domestic Institutional Investors (DIIs) buying. Unlike earlier sessions where DIIs absorbed FII selling, this time their buying remained limited amid expectations of weak September quarter results due to muted consumption after GST rate cuts.

Stock-Specific Updates

BSE Ltd: Fell sharply as SEBI began consultations to phase out weekly derivatives expiry in favor of long-term contracts. The move is negative for exchanges and brokers, as weekly expiry has become a key trading instrument. The stock is now near its 200-day EMA support at 2,000.
Go Digit Insurance: Faced a fresh ₹30 crore GST demand (including penalty and interest). The company said there is no immediate financial impact, but the matter will be contested.
Vishnu Prakash R Punglia: Promoter Anil Punglia sold over 6 lakh shares, reducing his stake from 6.01% to just 0.48%. The continued promoter selling has weighed heavily on the stock, which has been under pressure for months.
Shipping Sector: Positive developments as the government approved a ₹25,000 crore Maritime Development Fund and an additional ₹70,000 crore package for the shipping industry. Stocks like Shipping Corporation of India, Cochin Shipyard, Garden Reach Shipbuilders, and Mazagon Dock may benefit.
Dabur India: Received fresh tax demands worth ₹271 crore, in addition to earlier notices. The company is expected to contest the order.

Outlook

The overall sentiment remains weak with midcaps and smallcaps under heavy selling pressure. Nifty Bank appears relatively stronger compared to Nifty 50 and Sensex, but the 55,000 level is crucial. Analysts suggest monitoring 25,000 on Nifty 50 and 82,000 on Sensex as immediate support levels.