After a subdued start on October 22, the Sensex and Nifty lost their footing as selling pressure escalated in the broader market. Both auto and metal indices tumbled over 1 percent each, dragging the Nifty 50 into negative territory.

At 11.50 AM, the Sensex was down 408 points or 0.5 percent at 80,742, and the Nifty was down 140 points or 0.6 percent at 24,640. About 555 shares advanced, 2,795 shares declined, and 70 shares remained unchanged.

The Indian benchmarks have been struggling to keep their gains amid a lackluster earnings season, FII selling, and global market weakness amid the ongoing Middle East conflict.

Foreign Institutional Investors (FIIs) have been consistently pulling out funds from Indian equities and redirecting them to China, where recent stimulus measures and cheaper valuations have made the market more attractive. FIIs have been net sellers throughout October.

In the broader market, the pain was even more pronounced, with the BSE Midcap and Smallcap indices shedding 1.5 percent and 2.5 percent, respectively, as investors stayed cautious in a volatile environment. The India VIX, also referred to as the fear gauge rose over 3 percent to 14.2.

Sectoral Trend

Almost all sectoral indices were deep in the red. Nifty Realty took the hardest hit, sinking nearly 3 percent, with every single stock in the index trading in the negative.

Nifty Auto, Nifty Energy, Nifty Metal, and Nifty Private Bank fell 1.0-2.5 percent each.

Fundamental View

"When market valuations are at elevated levels some triggers will cause corrections, making the valuations reasonable and in tune with long-term averages," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "This time the trigger for the correction has come from the sustained selling by FIIs."

Technical View

"Observing the daily chart, Nifty continues to consolidate within a defined trading range," said Sameet Chavan, Head of Technical and Derivative Research at Angel One. Chavan said that a breakdown below 24,600 could spark a deeper price correction, potentially causing a more severe decline. He also noted that 25,250 remains a critical resistance level for Nifty 50.

Key Nifty gainers

ICICI Bank, Shriram Finance, Nestle, Bajaj Auto, Bharti Airtel

Key Nifty losers

Tata Motors, Tata Steel, M&M, Bharat Electronics, IndusInd Bank

Key Sensex gainers

ICICI Bank, Nestle, Bharti Airtel, HUL, Wipro

Key Sensex losers

Tata Motors, Tata Steel, M&M, IndusInd Bank, L&T

Stock moves

One 97 Communications: Shares fell by almost 5 percent after the company reported September quarter results. The Vijay Shekhar Sharma-led firm clocked a net profit of Rs 930 crore in Q2FY25, compared to a net loss of Rs 290.5 crore during the same period last year.

Bajaj Housing Finance: Shares soared as much as 4 percent in early trade buoyed by the company's healthy earnings performance in the July-September quarter.