Indian Markets Slip Mid-Week as Banks, IT Face Profit Booking

Indian equity markets slipped in mid-week trade, extending recent volatility as investors turned cautious after the recent rally. Benchmark indices opened lower and remained under pressure through the session, dragged down by heavyweight banking, IT, and select FMCG stocks.

Market participants appeared to lock in profits, particularly in large-cap stocks that had seen strong gains in recent weeks. Banking shares witnessed mild selling pressure as concerns around net interest margins and near-term earnings visibility resurfaced. IT stocks also underperformed, tracking weakness in global tech cues and currency fluctuations.

Broader market sentiment remained fragile, with midcap and smallcap stocks seeing selective selling. Traders cited rich valuations, upcoming earnings announcements, and mixed global signals as reasons for the subdued mood. Meanwhile, defensive pockets such as pharmaceuticals and select consumption names offered limited support, preventing sharper losses.

Experts suggest that the current decline reflects healthy consolidation rather than a structural weakness. With macro indicators stable and domestic liquidity supportive, markets are expected to remain range-bound in the near term, with stock-specific action dominating as earnings season gathers pace.