Nifty loses 198 pts, Sensex down 756 pts on Wednesday as IT stocks, rising crude drag markets

MUMBAI: Indian equity markets closed lower on Wednesday, dragged down by heavy selling in IT stocks and rising crude oil prices amid ongoing global uncertainty linked to tensions between the United States and Iran. The benchmark Nifty 50 index closed at 24,378.10, declining by -198.50 points (-0.81 per cent), while the BSE Sensex ended at 78,516.49, down by -756.84 points (-0.95 per cent).

Market sentiment remained under pressure due to a combination of global and domestic factors, including elevated oil prices, geopolitical tensions, and foreign fund outflows.

According to Vikram Kasat, Head Advisory at PL Capital, “The market saw a dramatic shift today, with the key indexes witnessing a decline after yesterday’s gains. Decline mainly due to aggressive selling of IT stocks following poor guidance from HCLTech and negative global cues. Higher oil prices, continued geopolitical tensions between the United States and Iran, and foreign fund selling also weighed on the market mood, maintaining high volatility levels throughout the day”.

He added that the outlook remains cautious in the near term, with markets likely to stay range-bound amid geopolitical uncertainty and oil price movements, although stock-specific action from Q4 earnings may provide selective support.

On the sectoral front, the Nifty IT index saw the sharpest decline, falling by around 4 per cent. Other sectors such as Nifty Auto and Nifty Private Bank also ended in the red, losing 0.70 per cent and 0.74 per cent respectively. However, some sectors managed to post gains, with Nifty FMCG rising by 0.8 per cent, Nifty Media up by 0.63 per cent, Nifty Metal gaining 0.47 per cent, and Nifty Realty advancing by 0.56 per cent.

Global developments continued to influence market movements. US President Donald Trump has extended the two-week ceasefire in the Gulf to an indefinite period, while Iran has so far refused to participate in the second round of negotiations with the United States. The US continues its blockade of the Strait of Hormuz, which is estimated to cost the Iranian economy about $500 million per day. Iran has made the lifting of this blockade a key condition for resuming talks.

Meanwhile, Brent crude oil prices remained elevated, rising by around 1 per cent to $99.20 per barrel. The surge comes after the planned visit of US Vice President J D Vance to Pakistan for the second round of talks was put on hold due to a lack of response from Iran.

Precious metals also witnessed an upward trend. Gold prices were trading at Rs 1,53,209 per 10 grams for 24 karats, while silver prices rose by 1.85 per cent to Rs 2,49,218 per kg at the time of filing this report.

In other Asian markets, a mixed trend was observed. Japan’s Nikkei 225 index rose by 0.30 per cent to 59,526, while Taiwan’s weighted index gained 0.72 per cent to 37,878 and South Korea’s KOSPI index increased by 0.46 per cent to 6,417. However, Hong Kong’s Hang Seng index declined by 0.90 per cent to 26,250 and Singapore’s Straits Times index fell by 0.41 per cent to 4,994. (ANI)