View on Market Performance - Volatile Session Ends with Minor Loss, PSU Banks and Metal Shine

The Nifty concluded a day of extraordinary volatility, marking its third consecutive day of decline with a marginal fall of 32 points (0.13%), to close at 25,169. The day was a tug-of-war between bulls and bears; after a flat open, the index dropped sharply by 118 points, staged a powerful 178-point recovery, and then gave up a significant portion of those gains in the final hour of trading.

IndusInd Bank, Axis Bank, and Bajaj Finance emerged as the top gainers within the Nifty pack. On the flip side, it was a particularly tough session for Tech Mahindra, Trent, and SBI Life, which ended as the major losers. Cash market turnover on the NSE was higher by 2% compared to yesterday, reflecting the heightened activity in the market.

Indian rupee’s weakness continued for a second straight day, depreciating 44 paise against the greenback to close at a new lifetime low of 88.75 levels. This downturn is largely attributed to a persistent bearish sentiment driven by external worries and a continued outflow of foreign funds.

Sectoral performance was a mixed bag today. Amongst them, PSU Banks, Metal and Auto ended with the highest gains. On the other hand, leading the declines were sectors like FMCG, Realty, and IT, which faced significant selling pressure.

The broader market indices continued profit booking for the second day in a row. The Nifty Midcap 100 Index fell by 0.35%, while the Nifty Smallcap 100 Index lost 0.53%. Market breadth remained weak for the second day in a row, with declining shares outnumbering advancing ones, as reflected in a BSE advance-decline ratio of 0.76.

Despite the volatile price action, Nifty managed to hold above its previous swing high of 25153 on a closing basis and maintained its position above the crucial 20 DEMA support level, which is currently placed at 25041. On the upside, the key resistance levels to watch for are 25331 and 25448.

Source: HDFC Securities Prime Weekly, 23 Sept 2025

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