Mumbai, Aug 20 (NationPress) The Indian benchmark indices experienced a slight dip during the morning session on Wednesday, influenced by mixed global signals.

The BSE Sensex decreased by 112 points or 0.14 percent, settling at 81,531. Meanwhile, the Nifty 50 saw a decline of 41 points or 0.16 percent, reaching 24,939.

Broader markets lagged, with the Nifty Midcap 100 and Nifty Smallcap indices both closing in the negative territory, down 0.17 percent and 0.19 percent respectively.

The Nifty Bank index fell by 0.42 percent, while most other indices recorded moderate losses of up to 0.50 percent.

It’s worth noting that the NSE’s benchmark index Nifty had surged by 364 points over the past three days, spurred by optimistic announcements regarding GST reforms expected to be rolled out before Diwali.

“A sustained rally seems unlikely as reports from the US government regarding the August 27 deadline for the 25 percent secondary tariff on India are not favorable. President Donald Trump’s tariff policy appears to be irrational and driven by personal agendas,” stated Vinod Nair, Head of Research at Geojit Investments Limited.

In the short term, investors are likely to concentrate on domestic consumption sectors, including banking and financial services, telecommunications, hospitality, healthcare, automobiles, and cement, particularly in fairly valued segments, he added.

From a technical standpoint, the Nifty has been consolidating in a sideways-to-bullish trend following a gap-up opening.

“The index consistently finds support at major EMA levels, indicating robust underlying strength,” said Mandar Bhojane from Choice Equity Broking.

If Nifty manages to stay above 25,050, it could target levels of 25,250 and 25,500 in the upcoming sessions. Analysts suggest that the market remains bullish and any dips may present buying opportunities.

In the Asia-Pacific region, markets fell in early trading, mirroring declines on Wall Street, as investors analyzed Japan's trade statistics. Japan's exports fell by 2.6 percent year-on-year in July, marking the steepest decline in four years, exceeding analysts' predictions of a 2.1 percent drop.

In the US market, the Dow Jones increased by 0.02 percent, while the NASDAQ decreased by 1.46 percent and the S&P 500 fell by 0.59 percent.

Within Asia, China's Shanghai and Shenzhen indices dropped by 0.04 percent and 0.59 percent respectively. Japan's Nikkei fell by 1.52 percent, Hong Kong's Hang Seng index slipped by 0.41 percent, and South Korea's KOSPI declined by 1.86 percent.

On Tuesday, foreign institutional investors (FIIs) became net sellers again after a day of purchasing, offloading Indian equities worth Rs 634 crore. In contrast, domestic institutional investors (DIIs) continued their support with net purchases amounting to Rs 2,261 crore.

–IANS

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