Indian equities faced downward pressure for the second consecutive session, with the Nifty closing 124 points lower at 25,202. The benchmark index opened with a significant gap-down of 89 points and, despite a brief recovery attempt to fill the gap, succumbed to sustained selling pressure throughout the trading day.

IT Sector Bears the Brunt

The Information Technology (IT) sector emerged as the primary drag on the market, with the IT index plummeting over 3%. This sharp decline was triggered by news of the United States raising the one-time H-1B visa fee to $100,000, a move that could potentially impact Indian IT companies' operations and costs in their crucial US market. The sell-off was broad-based within the sector, with all IT index constituents ending in the red. Notable losers included:

• Tech Mahindra
• Tata Consultancy Services (TCS)
• Infosys

These companies led the losses among IT stocks, reflecting investors' concerns about the potential impact of increased visa costs on their profitability and operations in the US market.

Sectoral Performance

Apart from the IT sector, other segments of the market also experienced declines:

• The Pharma sector saw a drop of 1.40%
• Broader markets ended their impressive 11-session winning streak:
  • Nifty Midcap 100 index fell by 0.67%
  • Nifty Smallcap 100 index declined by 1.17%

Market Gainers

Despite the overall negative sentiment, some stocks managed to buck the trend:

• Adani Enterprises
• Eicher Motors
• Bajaj Finance

These companies emerged as the top gainers in the session, providing some resistance to the market's downward movement.

Technical Outlook

The recent market correction has seen the Nifty retreat nearly 300 points from its recent swing high of 25,448. Market experts view this weakness as a potential buying opportunity for investors looking to enter on dips. They identify key technical levels as follows:

Looking Ahead

As the market digests recent developments, attention is shifting to upcoming events that could influence trading sentiment. Of particular interest is the visit of Commerce Minister Piyush Goyal to the United States for trade talks. Investors and analysts will be closely monitoring these discussions for any developments that could impact bilateral trade relations and, consequently, market dynamics.

The recent market correction and the specific challenges facing the IT sector underscore the importance of staying informed about global policy changes and their potential impact on domestic markets. As the situation evolves, market participants will be keenly watching for any signs of recovery or further consolidation in the coming sessions.

The Indian stock market witnessed a significant upswing as the Nifty index broke through key resistance levels, signaling renewed bullish sentiment. Here's a detailed look at the day's market movements and expert insights.

Nifty's Breakout Performance

The Nifty demonstrated impressive strength, surging 169.00 points to close at 25,239.00. This move marked a decisive breakout above the previous swing high of 25,154.00 set on August 21, indicating a potentially strong upward trend.

Banking Sector Shines

The banking sector played a pivotal role in the day's rally:

• Nifty Bank crossed the psychological barrier of 55,000.00 for the first time since August 25.
• Banking heavyweights like Kotak Bank, Axis Bank, and HDFC Bank were among the key drivers of the gains.

Broader Market Participation

The bullish sentiment was not limited to large-cap stocks:

• The broader markets extended their winning streak to eight consecutive sessions.
• Nifty Midcap 100 gained 0.54%.
• Nifty Smallcap 100 rose by 0.95%.

Key Contributors

Besides the banking sector, other major contributors to the day's rally included:

• Reliance Industries
• Tata Consultancy Services (TCS)

Investor Sentiment

The positive market movement was supported by both domestic and foreign investors:

• Foreign Institutional Investors (FIIs) remained net buyers.
• Domestic Institutional Investors (DIIs) also maintained a net buying position.

Market Focus

Investors and analysts are closely watching two key events:

1. Ongoing India-US trade talks
2. The upcoming Federal Reserve policy decision, with markets pricing in expectations of the first rate cut

Technical Outlook

Analysts remain optimistic about the market's trajectory:

• The current uptrend is expected to continue.
• Key resistance levels are identified at 25,300.00 and the July 9 high of 25,548.00.
• Expert views suggest potential upside towards the 25,400.00-25,500.00 range.
• Support is seen at the 25,100.00 level.

As the Indian market demonstrates resilience and breaks new ground, investors will be keenly watching how these positive trends unfold in the coming sessions, particularly in light of global economic developments and domestic growth prospects.