Mumbai: Indian equity markets extended losses in midday trading on Thursday, with the falling more than 900 points and the Nifty approaching 22,300 around 1 pm. Selling intensified after a weak start, with auto shares leading the decline.
Auto Stocks Bear The Brunt
The Nifty Auto index dropped nearly 4 per cent, while media and metal stocks also faced heavy selling. Most major sectoral indices traded lower, although the Nifty IT index held in positive territory.
fell more than 6 per cent around 12:45 pm. Kotak Mahindra Bank and HDFC Life offered some support, trading more than 1 per cent higher at that time.
Foreign Selling Keeps Markets Under Pressure
Persistent foreign fund outflows continued to weigh on sentiment. Foreign institutional investors sold Indian equities worth ₹10,148.41 crore on Wednesday, according to exchange data.
Domestic institutional investors bought shares worth about ₹11,271 crore during the same session. Their purchases provided support, but sustained overseas selling remained a concern for investors.
Rising US bond yields and weakness in the rupee added to the pressure on domestic shares. These factors, alongside the sharp fall in auto stocks, contributed to the broader decline.
Nifty Falls Below Morning Support Zone
The Nifty’s midday decline took it below the 22,500–22,550 support range identified by analysts before trading gathered pace.
The index’s approach towards 22,300 marked a further deterioration from its morning levels. Analysts had placed resistance at 22,800–22,900, with a sustained recovery above that range needed to improve sentiment.
Kotak Gains On Leadership Clarity
Kotak Mahindra Bank remained among the brighter spots after receiving RBI approval to appoint Anup Kumar Saha as managing director and chief executive from January 1, 2027.
The leadership announcement helped the stock attract buying interest even as the broader market weakened.