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

The BSE Sensex decreased by 112 points, or 0.14 percent, settling at 81,531. Meanwhile, the Nifty 50 dropped by 41 points, or 0.16 percent, to reach 24,939 points.

The broader markets lagged behind, with the Nifty Midcap 100 and Nifty Smallcap indices both closing lower, down 0.17 percent and 0.19 percent respectively.

The Nifty Bank index saw a decline of 0.42 percent, and most other indices recorded moderate losses of up to 0.50 percent.

In recent days, the NSE's benchmark index Nifty had surged by 364 points, buoyed by encouraging announcements regarding GST reforms expected to be implemented before Diwali.

Vinod Nair, Head of Research at Geojit Investments Limited, stated, “There is limited potential for a sustained rally as unfavorable news from the US administration looms over the impending August 27 deadline for a 25 percent secondary tariff on India. US President Donald Trump’s tariff strategies, lacking in logic and fairness, seem driven by personal interests.”

In the near term, investors are advised to concentrate on domestic consumption sectors such as banking, financials, telecommunications, hospitality, healthcare, automotive, and cement, especially within the fairly valued segments, he continued.

On a technical note, the Nifty has been consolidating within a sideways-to-bullish trend following a gap-up opening.

Mandar Bhojane from Choice Equity Broking noted, “The index consistently finds support at key EMA levels, showcasing significant underlying strength.”

Should the Nifty maintain levels above 25,050, it could potentially advance towards 25,250 and 25,500 in upcoming sessions. Analysts suggest that the market remains in a bullish mood, and recent dips may present buying opportunities.

In early trading, Asia-Pacific markets dropped, following declines in Wall Street as investors assessed Japan’s trade statistics. Japan's exports fell by 2.6 percent year-on-year in July, surpassing analysts’ expectations of a 2.1 percent decrease, marking the steepest decline in four years.

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

In Asia, China’s Shanghai index and Shenzen index fell by 0.04 percent and 0.59 percent respectively. Japan’s Nikkei decreased by 1.52 percent, Hong Kong’s Hang Seng index dipped by 0.41 percent, and South Korea’s KOSPI was down by 1.86 percent.

On Tuesday, foreign institutional investors (FIIs) turned net sellers again after a brief buying spree, divesting Indian equities worth Rs 634 crore. Meanwhile, domestic institutional investors (DIIs) continued to support the market with net purchases totaling Rs 2,261 crore.

–IANS

aar/na