The Indian equity markets couldn’t keep up with the winning spree, as both the benchmark indices declined by over 1.5%. Market uncertainty over the West Asia conflict and volatility in energy prices added to investor caution. Sharp swings in crude oil prices and a decline in the Indian rupee also added to the market slump.
By the end of the trade, the bears took charge, with the domestic indices closing in the red territory. The BSE Sensex closed at 76,863.71, down 1,342.27 points or 1.72%. The NSE Nifty too saw a sell-off, closing at 23,866.85, declining 394.75 points or 1.63%.
Market experts noted that today’s fall was also led by heavy profit booking, with several sectoral indices taking a major hit. The Nifty Auto fell by more than 3%, while the Nifty Bank index slumped to 55,773.90, falling 1,176.90 points or 2.07%.
“Domestic equities ended lower as weak global cues and the ongoing US–Iran conflict kept risk-off sentiment elevated. Concerns over rising inflation stemming from potential energy supply disruptions and rationing prompted investors to book profits, while continued FII outflows further added to market pressure.
Sector-wise, auto, banking, and realty stocks bore the brunt of the decline amid growing worries over a demand slowdown. In contrast, healthcare stocks attracted defensive interest, while gas distributors gained after the government prioritized gas allocation. Looking ahead, markets are likely to remain cautious as investors await U.S. and domestic inflation data and clearer macro signals before taking fresh directional bets,” said Vinod Nair, Head of Research at Geojit Investments, in an email note.
Some key highlights from today’s trade:
Sensex, Nifty – Intraday movement
The Indian equity indices opened Wednesday’s trade on a muted note, with a bit of negative sentiment. The Nifty 50 dropped 5 points or 0.02% to open at 24,256. During the trading session, it moved to an intraday high of 24,299 and an intraday low of 23,834.30, marking a movement of over 464 points.
The BSE Sensex opened 14 points or 0.02% lower at 78,191, and moved to an intraday high of 78,324.37 and plunged to an intraday low of 76,759.26, marking an intraday swing of over 1,565 points.
Key laggards in today’s trade
The broader market was in the red, with financial services stocks at the forefront. Bajaj Finance emerged as the top loser, declining by more than 5%, while Axis Bank and Bajaj Finserv plummeted by 4%.
The auto segment witnessed steep declines as Eicher Motors, M&M, Tata Motors Passenger Vehicle, Maruti, and Bajaj Auto fell within the range of 2–3%.
Heavyweights including HDFC, SBI India, and ICICI Bank also declined by more than 1%.
Key gainers in today’s trade
While the market was soaked in red, Jio Financial Services extended gains of over 1%. Pharma stocks including Sun Pharma and Dr Reddy’s also edged up.
PSU stocks including ONGC, Coal India, and NTPC were also up marginally.
Uncertainty over the Middle East conflict
While US President Donald Trump had signalled that the war with Iran may end soon, reports of the US and Israel launching air strikes on Iran have kept the markets on edge, with no signs of war de-escalation.
Crude and energy prices
Oil prices are also witnessing sharp swings as the closure of the Strait of Hormuz — a key route for Middle Eastern oil — keeps the markets jittery. Brent crude futures, currently trading near the $90 per barrel mark, tumbled down to an intraday low of $81 per barrel in yesterday’s trade.
Gas stocks gain
The Nifty Oil and Gas index was in the green, up 0.12%. Adani Total Gas share price was up nearly 20%. Also, Gujarat Gas, Gujarat State Petronet, and Indraprastha Gas climbed by over 3%.
Oil India, ONGC, and Mahanagar Gas advanced too.
Rupee weakens again to 92
The Indian rupee, which had strengthened yesterday, breached the 92 level mark yet again, closing at 92.04 against the US dollar, down 0.2% on the day. Traders quoted by Reuters said that intermittent dollar sales by state-run banks helped limit the losses for the domestic currency.