Indian equity benchmarks opened lower on Thursday, extending the previous session’s decline, with the Nifty50 slipping below the 25,650 level in early trade amid broad-based selling. The BSE Sensex fell over 400 points, as investor sentiment turned cautious after the recent rally.

Market participants appeared to lock in gains at higher levels, leading to selling across heavyweight stocks. The recent up-move in benchmarks prompted investors to pare exposure, especially in cyclical and rate-sensitive sectors.

Metal Stocks Lead Sectoral Declines

The Nifty Metal index emerged as the top laggard, falling around 2% in early trade. Stocks such as Tata Steel, JSW Steel, and Hindalco Industries declined between 2% and 3%, weighing heavily on the benchmark indices. Weak global cues and profit-taking pressured metal counters.

Pharma Stocks Also Trade Lower

Pharmaceutical shares added to the downside, with the Nifty Pharma index slipping close to 0.7%. Sun Pharma and Cipla fell around 1%, while Dr Reddy’s Laboratories also traded in the red, dragging the sector lower.

Banks and IT Offer Limited Support

Banking and IT stocks showed mixed trends, offering little relief to the broader market weakness. Select large private banks traded marginally lower, while IT shares moved in a narrow range amid muted global cues.

Broader Markets Underperform

The weakness extended beyond frontline indices, with mid-cap and small-cap indices declining up to 1%, indicating a cautious risk appetite. Selling was visible across sectors, pointing to a broader consolidation phase.

Market participants said near-term movement is likely to remain range-bound, with stock-specific action dominating trade until clearer global and domestic triggers emerge.