Introduction: Indian Stock Market Starts on a Volatile Note
The Indian stock market opened on a mixed and cautious note today as benchmark indices — BSE Sensex and NSE Nifty 50 — struggled for direction in early trade. The Nifty opened below 26,000 levels, while the Sensex slipped from record highs amid global cues and sectoral volatility.
Investors are reacting to the latest US Federal Reserve policy, corporate earnings from key Indian companies like Dabur, L&T, HPCL, and Dr. Reddy’s, and renewed optimism over a possible India-US trade deal.
While sentiment remains broadly positive, profit booking and global uncertainty have led to a choppy session.
Key Highlights: Stock Market Live Updates
- Nifty 50 opened at 25,945, down 60 points.
- Sensex fell 180 points in early trade, hovering near 85,100.
- Dr. Reddy’s Laboratories shares dropped 4.5% after reports of a drug approval delay from the USFDA.
- Larsen & Toubro (L&T) traded lower as quarterly results missed estimates due to extended monsoons.
- Dabur, Bandhan Bank, Canara Bank, Cipla, and Motilal Oswal are among major firms reporting results today.
- Global cues mixed: Wall Street slipped overnight as Fed Chair Jerome Powell hinted no guaranteed rate cut in December.
- Midcap IT stocks under pressure after last week’s rally on rate-cut expectations.
Sensex Today: Opening Bell and Early Market Mood
At the opening bell, the BSE Sensex fell nearly 200 points, reflecting weak global sentiment and stock-specific corrections. The index had been inching toward its all-time high of 85,350, but selling pressure in IT and pharma sectors capped gains.
The NSE Nifty 50, meanwhile, remained volatile below the 26,000 mark, weighed down by Dr. Reddy’s, Infosys, and L&T.
Top Gainers and Losers
- Top Gainers: NTPC, Power Grid, Bharti Airtel, Coal India, Axis Bank
- Top Losers: Dr. Reddy’s, Infosys, L&T, Titan, HCL Tech
Sector-Wise Performance
- Nifty Bank: Slight gains led by Axis Bank and ICICI Bank.
- Nifty IT: Down 1.2% as rate cut hopes fade.
- Nifty Pharma: Dragged lower by Dr. Reddy’s and Cipla.
- Nifty FMCG: Flat ahead of Dabur and Hindustan Unilever results.
- Nifty Energy and PSU stocks: Witness mild buying on stable crude oil prices.
Global Cues: Fed Policy and Wall Street Reaction
The US Federal Reserve on Wednesday cut interest rates by 25 basis points, as expected. However, Fed Chair Jerome Powell’s statement that a further cut in December was “not a foregone conclusion” triggered selling in US equities.
The Dow Jones Industrial Average dropped over 400 points from session highs, closing in the red. The S&P 500 and Nasdaq Composite also ended lower, reflecting investor anxiety over global growth.
Asian markets mirrored this volatility. Nikkei 225, Hang Seng, and Kospi traded mixed, while Shanghai Composite remained flat.
Indian markets, which had rallied earlier on Fed optimism, turned cautious after Powell’s hawkish tone.
Dr. Reddy’s Laboratories Slumps 4.5% on Drug Approval Delay
In one of the most significant stock-specific moves, Dr. Reddy’s Laboratories saw a sharp 4.5% decline in early trade. The fall came after reports indicated that the USFDA had delayed the approval of one of its key generic drugs — a critical product expected to contribute significantly to FY26 revenue.
Analyst View:
- Brokerages like Nomura and Motilal Oswal have expressed concern about the short-term impact on earnings.
- The delay could affect margins in the US generics business.
- However, analysts believe that long-term fundamentals remain intact, with new launches expected in early 2026.
Dr. Reddy’s stock was trading around ₹6,020 on the NSE, down from its previous close of ₹6,305.
L&T Results Miss Estimates: Extended Monsoon Impact
Larsen & Toubro (L&T) shares slipped nearly 2% after the infrastructure giant’s Q2 earnings fell short of street expectations. The company cited extended monsoon conditions as the reason for delayed project execution and slower revenue recognition.
L&T Q2 Highlights:
- Revenue: ₹53,800 crore (up 7% YoY, but below estimates)
- Net Profit: ₹3,800 crore (flat YoY)
- Order Book: ₹4.65 lakh crore (up 12% YoY)
- EBITDA Margin: 10.5% (vs 11% last year)
Despite the earnings miss, management reaffirmed its FY26 guidance of double-digit growth driven by infrastructure and hydrocarbon orders.
Dabur Q2 Results Preview: Moderate Growth Expected
Dabur India is set to announce its Q2FY26 results later today. Analysts expect consolidated revenue growth in mid-single digits, driven by steady demand recovery in the healthcare and home care segments.
What Analysts Expect:
- Revenue Growth: 4–6% YoY
- EBITDA Growth: 4–5% YoY
- PAT: Likely around ₹500 crore
- Rural demand recovery and new launches may boost growth in the coming quarters.
Brokerages such as Kotak Institutional Equities and Axis Securities remain positive on Dabur’s medium-term prospects, citing strong brand equity and pricing power.
Market Technical Outlook: Nifty Support and Resistance Levels
Technical analysts suggest that the Nifty 50 has immediate support near 25,810 (Tuesday’s low) and resistance around 26,100–26,277 (recent high).
Key Levels to Watch:
- Support Zone: 25,810–25,750
- Resistance Zone: 26,097–26,277
- Bank Nifty support: 54,820
- Bank Nifty resistance: 55,350
If Nifty sustains above 26,000, analysts expect a retest of the 26,277 all-time high. However, a break below 25,800 could trigger a short-term correction toward 25,500.
Midcap and Smallcap Action
The Nifty Midcap 100 and Nifty Smallcap 100 indices saw mild declines amid stock-specific profit booking.
Stocks like IEX, Carborundum, PB Fintech, and RailTel were active ahead of results, while United Breweries rose over 2% after better-than-expected numbers.
Investors continue to rotate between defensive and growth stocks, leading to volatility across midcap counters.
Global Market Impact: Trump-Xi Meeting and Trade Talks
Investors are closely watching the scheduled meeting between US President Donald Trump and Chinese President Xi Jinping, which could influence global trade sentiment.
US futures showed volatility ahead of the meeting, with market participants hoping for a partial trade deal that could benefit export-oriented Indian sectors like IT and metals.
Expert Views: What Market Strategists Are Saying
Several market experts have weighed in on the day’s developments:
1. VK Vijayakumar, Chief Investment Strategist, Geojit Financial:
“The Fed’s stance has disappointed markets. Investors should remain cautious in the short term, though India’s domestic story remains strong.”
2. Ajit Mishra, Religare Broking:
“The Nifty is likely to consolidate between 25,800–26,200 before breaking out. Stock-specific action in midcaps will dominate.”
3. Gaurav Bissa, Kotak Securities:
“The immediate resistance for Nifty is 26,100. A close above this could take the index to fresh highs.”
Stock-Specific Movers
1. HPCL:
Gained over 1% after reporting higher refining margins and better-than-expected Q2 profit.
2. NTPC Green Energy:
Stock rose 2% following reports of strong renewable energy expansion plans.
3. LIC Housing Finance:
Flat ahead of its quarterly results; analysts expect a steady improvement in loan growth.
4. RailTel:
Up 1.5% after securing new government contracts for digital infrastructure.
5. Bandhan Bank:
Under pressure after asset quality concerns resurfaced; stock down 2%.
Investors’ Focus Shifts to Earnings and Policy Outlook
With the monthly F&O expiry due today, traders are adjusting positions across indices. Broader market activity indicates short covering in select banking and auto stocks.
The market sentiment will also depend on:
- The US-China trade meeting outcome.
- Domestic earnings from key companies like Cipla, Dabur, NTPC, and Motilal Oswal.
- Oil price trends, which impact inflation and fiscal stability.
Nifty and Sensex Outlook for This Week
Market experts believe that the Nifty 50 could trade in a narrow range before a decisive breakout next week.
Bullish Scenario:
If Nifty closes above 26,100, it may test 26,350–26,500 levels.
Bearish Scenario:
A fall below 25,800 may push the index down to 25,500–25,400.
Bank Nifty is expected to remain resilient, supported by strong results from private sector lenders.
Conclusion: Volatility to Persist Ahead of Key Triggers
The Indian stock market remains in a consolidation phase amid mixed global and domestic cues. The Sensex and Nifty are witnessing profit booking after a strong rally earlier this month.
While Dr. Reddy’s stock slump has pressured the pharma sector, optimism over corporate earnings and a potential India-US trade breakthrough could lend support in the near term.
Key Takeaways:
Earnings season and trade deal updates to guide next market direction.
Nifty trades below 26,000 amid volatility.
Dr. Reddy’s down 4.5% on USFDA approval delay.
L&T results miss expectations; Dabur results awaited.
Powell’s comments dampen global risk appetite.
Watch 25,810 (support) and 26,100 (resistance) on Nifty.
