Benchmark indices Nifty and Sensex were off to a weak start on July 18 after a three-day rally on the bourses following a sharp fall in US chip stocks on reports that it is mulling tighter curbs on exports of advanced semiconductor technology to China. Nasdaq recorded its worst day since December 2022.

At about 9:20 am, the Sensex was down 202 points or 0.25 percent at 80,514.25 and the Nifty fell 0.28 percent at 24,543. About 1,447 shares advanced, 998 shares declined, and 229 shares unchanged.

"The weak opening in the market is a ripple effect of what's happened in the US and Asia markets overnights. Domestically, markets will likely consolidate before the budget," Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, told Moneycontrol. Bathini also said that Q1 earnings will play a big factor going forward and expectations are largely positive with no negative surprises.

IT major LTIMindtree was in focus today following its weak Q1 FY25 earnings show. The company reported a 1.5 percent decrease in consolidated net profit at Rs 1,135 crore. The IT sector will be in focus this week as Infosys is scheduled to declare its financial result later today. LTIMindtree shares were the top gainers on the Nifty, rising 3 percent. Infosys shares also rose over a percent.

From the auto sector, Bajaj Auto was buzzing in today's trade. This comes after brokerages remained negative on the counter despite its Q1 topping analyst estimates. Bajaj Auto shares were trading at Rs 9,460, down 3 percent from the last close.

As for the broader market, the midcap and smallcap indexes underperformed after trading 0.5 and 0.3 percent lower, respectively. Experts suggest that the outperformance isn't likely to sustain following the budget as more money is likely to flow into large-cap stocks. "The action in the two is stock specific and outlook and management commentary is crucial," Bathini says.

Among sectoral indices, realty and metal stocks slipped with the realty index being the worst-hit. DLF and Godrej Properties were the major contributors to the realty index. Gainers included the IT index only. Analysts believe that the worst is over for the sector and valuations seem attractive.

"The support zone for Nifty is at 24,500-24,400, which is expected to see buyers stepping in when there are dips. However, it's not entirely clear if the trend will continue at higher levels. Nifty has surpassed the Golden retracement level of 24,610, and the next key level to watch for is around 24,700-2475, Sameet Chavan, Head Research, Technical and Derivative at Angel One said.

LTIMindtree, Infosys, Apollo Hospitals, TCS, and Wipro were the Nifty gainers, while the losers consisted of Asian Paints, Bajaj Auto, Hero MotoCorp, Eicher Motors, and Cipla.

The VIX, also known as the fear gauge, rose 3 percent to almost 15. It is a real-time market index representing the market's expectations for volatility over the coming 30 days.