Extending losses for the third consecutive session, benchmark equity indices fell up to 0.92% on Wednesday as Brent crude prices climbed above $95 a barrel amid escalating tensions in West Asia. The proposed US tariffs on imported generic medicines weighed on pharma stocks, while selling in banking and IT shares further dragged the markets lower. A weakening rupee against the US dollar also dampened investor sentiment.
The Sensex fell 715.06 points, or 0.92%, to close at 76,755.05, while the Nifty declined 191.45 points, or 0.79%, to settle below the 24,000 mark at 23,996.25. Over the past three sessions, the Sensex and Nifty have lost 1.79% and 1.39%, respectively.
Escalating Middle East Tensions
“Investor sentiment remained subdued amid persistent geopolitical tensions in the Middle East, which pushed Brent crude prices above the $95-per-barrel mark and revived inflation concerns,” said Ajit Mishra, SVP–Research, Religare Broking.
Mishra added that the proposed phased US tariffs on imported generic medicines also weighed on pharma stocks, while weakness in the rupee further dampened sentiment. However, encouraging quarterly earnings from select auto companies helped cushion the market decline, he said.
“Stock-specific action is likely to dominate as the earnings season progresses. Investors will also closely monitor global macro developments, including the ECB’s interest rate decision and US jobless claims,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
Broad-based selling persisted across sectors, with the India VIX surging 5.6%, signalling heightened market volatility. Auto stocks extended gains for the second consecutive session after Bajaj Auto and TVS Motor reported strong Q1FY27 performances, Khemka said.
Heavyweight Banking Drag
Investors’ wealth eroded by Rs 4.27 lakh crore, dragging the BSE’s total market capitalisation down to Rs 480.05 lakh crore.
Market breadth remained negative, with 2,761 stocks declining against 1,473 gainers on the BSE. The BSE Midcap and Smallcap indices underperformed the benchmarks, falling 1.22% and 1.08%, respectively. Realty, PSU banks, IT, private banks and pharma were the top sectoral losers, while FMCG and auto were the only sectors to end with modest gains.
ICICI Bank, HDFC Bank and SBI together accounted for 305 points, or 42%, of the Sensex’s 715-point decline. InterGlobe Aviation (IndiGo), Axis Bank, Infosys, SBI and UltraTech Cement were the top losers in the Sensex pack.
According to provisional BSE data, foreign portfolio investors (FPIs) sold equities worth Rs 819.20 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 418.26 crore.