Sensex Slips, Nifty Holds Above 24,400 as Pharma Stocks Drag Market
Equity benchmarks opened flat but edged lower on Tuesday, with pharma stocks dragging indices; Sensex slipped over 80 points while Nifty held steady above 24,400.
Benchmark indices started Tuesday’s trade on a muted note before slipping into negative territory, pressured by weak cues from the pharmaceutical sector. At 9:24 am, the BSE Sensex was down 28.27 points at 80,768.57, while the NSE Nifty50 shed 10.85 points to 24,450.30.
Broader markets also mirrored the decline, with volatility inching up in early trade. Despite the dip, Nifty managed to stay above the crucial 24,400 mark, supported by select auto and telecom counters.
Among the top laggards on the Nifty50 were Cipla, Jio Financial Services, Dr Reddy’s, Titan, and Eternal. On the flip side, M&M, Hero MotoCorp, Bharti Airtel, ONGC, and Bajaj Auto posted early gains, providing some cushion to the benchmarks.
“Sustained FII buying for the 13th day in a row, supported by a weak dollar, has imparted resilience to the market despite the India-Pak tensions,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
From a technical perspective, the Nifty continues to move within a narrow consolidation band, forming a neutral candlestick pattern on the daily chart.
“A move above 24,500 could trigger fresh momentum towards 24,700-24,800. Key support is seen around 24,200 and 24,000, where dip-buying may emerge,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.
He added, “Traders should adopt a cautious approach with tight stop-losses and book partial profits on rallies. If Nifty sustains above 24,500, it may signal a breakout.”
On May 5, FIIs bought equities worth ₹497 crore, while domestic institutional investors (DIIs) invested ₹2,788 crore. The persistent inflow from both ends signals underlying confidence, even as geopolitical and macroeconomic concerns persist.
Vijayakumar noted that “tailwinds such as soft crude prices, declining inflation, and the RBI’s dovish stance may aid high GDP growth and corporate earnings in FY26.” However, he warned that escalating tensions between India and Pakistan could keep markets range-bound in the short term.
Overall sentiment remains cautiously bullish, with traders closely watching macro data, corporate earnings, and geopolitical developments. Large-cap private banks and IT stocks are expected to stay resilient, according to analysts.
“The market has the potential to scale new highs, but the near-term trend will depend on global cues and clarity on regional tensions,” said Vijayakumar.
