Indian stock markets ended Diwali day in negative territory, with the Sensex dropping over 500 points due to heavy selling pressure in the IT sector. The Sensex closed at 79,389.06, marking a decline of 553.12 points or 0.69%. Meanwhile, the Nifty 50 lost 135.50 points, or 0.56%, to end at 24,205.35.

Among other indices, the Nifty Bank fell by 332.15 points (0.64%) to close at 51,475.35, while the Nifty Midcap 100 index slipped 226.40 points (0.40%) to finish at 56,112.85. In contrast, the Nifty Smallcap 100 index bucked the trend, gaining 211.70 points, or 1.15%, to end at 18,602.60.

Most sectors saw broad-based selling, with IT, finance, and FMCG stocks taking a hit. However, sectors like pharma, media, and energy remained resilient. On the Bombay Stock Exchange (BSE), market breadth favored gainers, with 2,654 stocks advancing and 1,262 declining, while 110 stocks remained unchanged.

Tech Mahindra, HCL Tech, TCS, Infosys, and Asian Paints were among the top losers on the Sensex, while L&T, JSW Steel, Power Grid, and Mahindra & Mahindra posted gains, balancing some of the index's losses.

Market Sentiment

According to analysts, the Nifty index showed volatility throughout the session, facing resistance at the 21 EMA on hourly charts, which prompted a pullback toward the 24,200 level. Analysts suggest that the market sentiment may stay cautious if the Nifty remains below 24,500, with potential selling pressure on any upswings toward this mark.

Support for the Nifty is anticipated around 24,000, with resistance at 24,500 and 24,750.

Looking ahead, experts believe market momentum may see a rebound in the latter half of the year due to expected improvements in core sector performance and increased government spending, potentially shaping a favorable outlook for Samvat 2081.