The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,721 level, a discount of nearly 60 points from the Nifty futures’ previous close.

The Indian stock market is likely to open on a cautious note as indicated by the GIFT Nifty, which is down by 20 points in early trade currently at 23,703. The muted sentiment comes amid a broader sell-off across Asian markets,

Highlights: Among the broader markets, small-cap shares outperformed others, with the Nifty Smallcap100 ending up 1.35 per cent

The Nifty 50 index needs to sustain above the 23,800 level and thereafter, the significant 200 period MA of 23,920 level to improve the bias, says expert.

Indian benchmark indices Nifty and Sensex started the trading session on a weak note on Wednesday, impacted by a sharp decline in IT and metal stocks. However, gains in pharma and energy stocks helped offset the losses to some extent.

Adani Ports, Asian Paints, IndusInd Bank and Reliance Industries gained 1.3-1.6 per cent. Tata Motors Ltd, ICICI Bank Ltd, Power Grid, Tata Steel and UltraTech Cement also gained over 1 per cent each.

On January 8, strong backing from Reliance Industries prevented major indices from significant declines. Oil and gas stocks surged due to rising crude prices, while support from the IT sector and ITC share rebounds helped the indices recover to end the session flat.