Market closing: Sensex, Nifty end 4-day slide; Small cap index hit 6-month high

Indian equity markets ended higher on Tuesday, ending a four-session losing streak, as investor sentiment improved on the back of positive global cues, cooling retail inflation, and steady foreign institutional inflows. Market participants appeared to look past U.S. President Donald Trump’s shifting tariff rhetoric, choosing instead to focus on the ongoing corporate earnings season, which is expected to provide fresh direction for the markets.

The BSE benchmark Sensex ended 317 points, or 0.39%, higher at 82,570.91, and the NSE Nifty50 ended at 25,195.8, up by 113.5 points, or 0.45%. In the broader markets, both the Nifty MidCap and Nifty SmallCap indices rose around 0.95% each. Notably, the Nifty SmallCap 100 index closed at its highest level since the rally began in April 2025.

During the session, the 30-share BSE Sensex rose as much as 490 points, or 0.6%, to hit an intraday high of 82,743.62, while the broader Nifty50 gained 163 points, or 0.65%, to touch a day’s high of 25,245.20.

"Markets witnessed some respite and edged marginally higher after four consecutive sessions of decline. Following a flat start, the Nifty attempted a recovery in the early hours, largely driven by buying interest in select heavyweights. However, the upside remained capped near the short-term moving average around the 25,250 level,” said Ajit Mishra – SVP, Research, Religare Broking.

On the BSE Sensex pack, 22 out of 30 stocks ended in green zone, led by Sun Pharma , Bajaj Finserv , Tata Motors , Trent , and Mahindra & Mahindra , rising in the range of 2.7% and 1.28%.

On the other hand, HCL Tech , Eternal (Zomato) , Tata Steel , Kotak Mahindra Bank , and Axis Bank were among top laggards, falling up to 3%.

On the sectoral front, all sectoral indices ended in the green, indicating a broad-based buying across the indices. The Nifty Auto, Healthcare, Pharma, and Consumer Durables emerged as top performers.

The fear index (India VIX), which gauges the volatility in the markets, fell sharply by 4.17% to 11.48 points, suggesting easing volatility and improved trader sentiment.

In the derivatives segment, the highest Call open interest for Nifty is seen at the 25,300 and 25,500 strikes, hinting at resistance near those levels. On the Put side, the highest open interest is at the 25,000 strike, reinforcing it as a strong support area. This combination of technical and derivative signals points towards a potential upside if key levels are held, said Mandar Bhojane, Senior Technical & Derivative Analyst - Research at Choice Equity Broking.

Nifty key support at 25,000

The Nifty recovered during the day as the index found support around 25,000 in the previous trading session, said Rupak De, Senior Technical Analyst at LKP Securities.

On the higher end, however, the index faced initial resistance at the 21-EMA, which is placed around 25,250. A decisive move above 25,260 in the coming sessions could lead to a rally towards 25,400 and beyond. On the other hand, a failure to sustain above 25,260 might weaken the bulls’ grip on the market. In that case, the Nifty may decline towards the support zone of 25,000 and 24,920–24,900, he said.

“Nifty found support near its 50 days SMA and bounced back, which has raised hopes for the bulls to regain their momentum," said Nandish Shah - Deputy Vice President, HDFC Securities. Considering the evident strength across the broader markets, it appears that today's recovery is likely to be sustained, Shah said.

"Long should be protected with the stoploss of 25000 in Nifty. On the higher side, 25331 could offer short term resistance to Nifty,” added Shah.

Market participants drew comfort from the further easing of CPI inflation, which triggered notable buying in rate-sensitive sectors in hopes of a potential rate cut. However, continued disappointment from the IT space, following HCL Technologies' results, capped overall momentum. “With the hurdle at the short-term moving average (20 DEMA) near 25,250 still intact, we suggest maintaining a cautious stance on the index and adopting a selective approach on the sectoral front,” said Mishra of Religare Broking.

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