The Sensex slipped by 240.08 points, to open at 78,542.16, while the Nifty remained stable, opening flat at 23,997.75. Within the Nifty index, Hindalco, JSW Steel, Tata Steel, HCL Tech and Grasim were among the top gainers. On the other hand, Trent, HDFC Bank, Bharti Airtel and Reliance Industries were among the top losers.

Anand James, Chief Market Strategist, Geojit Financial Services, said, "A mean reversion move higher is expected after Nifty’s plunge below the August low of 23894, took it to the farthest from its 10 day EMA since 22nd Oct. An inside bar in 4hr charts also encourages us to pursue such an upmove. But, with VIX closing strong despite the recovery move in the second half, risk appetite still appears low, prompting us to limit upside expectations to 24176-260 for today."

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "With two thirds of Nifty 50 companies missing their earnings estimates in Q2, Nifty 50 earnings for FY25 has been drastically revised down to less than 10% from the consensus 15% earlier. With this kind of earnings downgrade it would be difficult to sustain the current valuation. This is the rationale of the relentless FII selling which might continue for some more time."