Benchmark indices the Sensex and the Nifty took a breather on April 25 morning after a four-day bull run to trade lower on weak global cues. Analysts, however, said there was little reason to worry as India's VIX remained at lower levels. They expect bouts of consolidation on the monthly expiry day and as the corporate earnings season continues.
The Sensex was down 17.31 points or 0.02 percent at 73,835.63, and the Nifty was down 14.90 points or 0.07 percent at 22,387.5. The market breadth favored gainers, as around 1,795 shares advanced, 972 declined and 105 were unchanged.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said since the VIX is at low levels, the market will not witness any serious corrections. In the near term, consolidation is likely, he added.
On technical charts, 22,500 remains a key resistance for Nifty, said Sameet Chavan, Head Research, Technical and Derivative - Angel One. He believes that a sustained trade in the range of 22,500-22,550 can trigger further upward movement. Conversely, immediate support levels are identified at 22,300-22,250.
Meanwhile, broader markets outperformed benchmarks, with BSE Midcap and BSE Smallcap indices gaining up to 0.4 percent on April 25 morning. Fear gauge India VIX, meanwhile, rose by 2 percent to 10.58.
Sectorally, Nifty PSU Bank was the top performer led by gains in SBI and PNB. On the flipside, Nifty Realty was the top laggard weighed by Phoenix Mills, DLF, and Macrotech Developers.
All eyes will be on corporate earnings season, with Nestle India, Bajaj Finance, and IndusInd Bank due to report their fourth-quarter financials.
Global markets somber; all eyes on US GDP data, tech quarterly results
Overnight, the US markets were mixed, with Dow Jones falling 0.1 percent, while tech-heavy NASDAQ Composite and S&P 500 indices added up to 0.1 percent.
Investors parsed quarterly results of Meta and IBM, with the former falling as much as 15 percent due to light revenue guidance for the second quarter, whereas the latter fell 8 percent as missed revenue estimates for Q1.
All eyes will be on Microsoft and Alphabet results due on April 25, while US first-quarter GDP data will also be keenly tracked.
Meanwhile, Asia-Pacific markets fell this morning as investors await US GDP data for fresh moves. Japan's Nikkei 225 dropped 1.8 percent, South Korea's Kospi was down 1.1 percent, and Hong Kong's Hang Seng index slipped 0.4 percent.
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