Indian stock markets remained highly volatile on Wednesday, with benchmark indices ending the session almost flat as heavy selling in IT stocks offset gains in private banks. This marked the fourth consecutive session of losses for the Sensex, reflecting ongoing investor uncertainty.
The Sensex began the day on a positive note, opening nearly 170 points higher at 74,270 and climbing to an intra-day high of 74,392. However, the optimism was short-lived as the index tumbled into negative territory, hitting a low of 73,598—almost 800 points down from its peak. By the close of the session, the Sensex had shed 73 points, or 0.1 percent, to settle at 74,030. The Nifty followed a similar trajectory, reaching a high of 22,577 before slipping to a low of 22,330, ultimately ending the day 27 points lower at 22,470.
IT Stocks Lead the Decline
The downturn was largely driven by IT stocks, which faced heavy selling pressure amid global concerns. Infosys suffered the steepest fall, plunging over 4 percent, while Tech Mahindra, HCL Technologies, TCS, and Nestlé India also recorded declines ranging between 1 and 3 percent. Other major losers included Asian Paints, Axis Bank, Hindustan Unilever, Zomato, and SBI.
According to analysts, fears of a potential US recession and stock downgrades by brokerage firms such as Morgan Stanley and Motilal Oswal Financial Services added to the sector’s woes.
“The IT sector is facing headwinds due to global economic uncertainties. The recent downgrades by analysts and recession fears in the US have made investors cautious,” said market expert Sundar Kewat from Ashika Institutional Equity.
Private Banks Cushion the Fall
Amid the broader weakness, private banks emerged as a bright spot in Wednesday’s session, helping limit overall market losses. IndusInd Bank led the gainers, surging nearly 5 percent after its CEO and group chairman addressed investor concerns.
Other banking stocks, including Kotak Mahindra Bank, HDFC Bank, and ICICI Bank, also posted gains of 1 to 3 percent. Automakers such as Tata Motors and financial stocks like Bajaj Finance and ITC contributed to the positive momentum in select pockets of the market.
“The strength in private banking stocks signals investor confidence in the sector’s stability despite broader market concerns,” Kewat added.
Broader Market Trends and Sectoral Performance
The broader market also mirrored the choppiness seen in the benchmark indices, with the BSE MidCap and SmallCap indices falling by 0.5 percent each. Market breadth remained weak, with nearly 2,500 stocks declining compared to around 1,500 advancing stocks on the BSE.
Sector-wise, the IT index suffered the most, slumping over 3 percent. The real estate sector also recorded losses of 1.7 percent, while the metal sector slipped by 0.5 percent. In contrast, private banking stocks outperformed, with the Nifty Private Bank index rising 0.7 percent.
Rupee Ends Flat Amid Global Uncertainty
Meanwhile, the Indian rupee remained stable, ending the day at 87.32 per dollar, marginally weaker than its previous close of 87.21. Analysts attributed this stability to easing crude oil prices and a softening of the US dollar index.
Investor sentiment was further dampened by global trade concerns, particularly after US President Donald Trump warned of a potential doubling of tariffs on Canadian steel and aluminum.
“The initial selloff was influenced by global trade worries. Trump’s statement on tariffs weighed on investor sentiment, leading to a cautious approach,” Kewat noted.
With global uncertainties looming and domestic markets struggling to find firm footing, investors will be closely watching upcoming economic data and corporate earnings for further direction.
-IANS
