Sensex, Nifty slip into red after early gains as volatility rises

Indian equity benchmarks surrendered early advances on Wednesday morning, with both the Sensex and Nifty trading lower amid heightened volatility and rising oil prices.

By 10:38 am, the 30-share BSE Sensex was down 305.97 points, or 0.37 per cent, at 83,428.28, after falling nearly 550 points from the day’s high. The broader Nifty 50 slipped 97.85 points, or 0.38 per cent, to 25,721.50, trading below the 25,750 level. Market breadth was negative, with 1,825 shares declining against 1,566 advances, while 164 remained unchanged.

Among the Nifty 50 constituents, Oil and Natural Gas Corporation emerged as the top gainer, rising nearly 2 per cent. Eicher Motors added over 1 per cent. Information technology stocks including Infosys, Tech Mahindra and Wipro advanced around 1 per cent each, tracking gains in US markets overnight. Pharmaceutical major Dr. Reddy's Laboratories and metals player Hindalco Industries also posted modest gains.

On the downside, InterGlobe Aviation was the worst performer on the index, sliding more than 2 per cent and featuring among the sharpest losers in the broader Nifty 200. Shares of Asian Paints, Bharat Electronics and Adani Ports and Special Economic Zone fell around 1 per cent each. Fast-moving consumer goods stocks such as ITC Limited, Nestle India and Tata Consumer Products also traded lower.

Technology counters found support after US indices ended higher overnight on easing concerns about the potential impact of artificial intelligence on major technology firms.

Crude oil prices remained firm following a sharp rally in the previous session, as investors factored in possible supply disruptions amid tensions between the United States and Iran.

Brent crude was trading around $70.31 per barrel after surging more than 4 per cent earlier in the week, while US crude hovered near $65.10, retaining most of its recent gains.

Market analysts said the Nifty would need to decisively breach the 25,900–26,000 zone to extend its upward momentum. Hitesh Tailor of Choice Equity Broking was quoted in the media as advising traders to remain selective and focus on fundamentally strong stocks amid persistent global uncertainties and elevated volatility, adding that fresh long positions should be considered only after a sustained breakout above 26,000.

Anand James of Geojit Investments was quoted by Moneycontrol as saying that the index could attempt to test 25,900 or even 26,050, though sustaining momentum beyond those levels remained uncertain. SAMCO Securities placed immediate support at 25,700–25,660, with resistance seen at 26,000–26,050.

The India VIX, a gauge of market volatility, rose 3.5 per cent to 12.66, signalling increased near-term uncertainty. With 19 February marking the monthly derivatives expiry for the Sensex, traders anticipate sharper intraday swings.

With agency inputs