Indian equity markets opened on a weak note on Wednesday, tracking mixed global cues and continued uncertainty around the US-Iran situation, despite an extension of the ceasefire by US president Donald Trump.
The BSE Sensex fell nearly 500 points in early trade to hover around 78,770, while the Nifty 50 declined over 120 points to trade near 24,450. Selling pressure was visible across key sectors including IT, banking, pharma and healthcare, with stocks such as HCL Technologies, ICICI Bank, Axis Bank and Apollo Hospitals among the major laggards. However, FMCG and metal stocks showed some resilience.
Market sentiment remained cautious as tensions persisted in West Asia. While the US extended the ceasefire with Iran, Tehran has reportedly rejected key conditions for further negotiations, keeping geopolitical risks elevated. The continued blockade in the Strait of Hormuz and uncertainty over oil supply disruptions have added to investor concerns.
Volatility also increased, with the India VIX index rising around 3 per cent, reflecting nervousness among traders. Analysts noted that while the broader market trend remains positive, near-term consolidation is likely due to profit booking at higher levels and sustained foreign institutional investor (FII) outflows.
According to provisional data, FIIs remained net sellers on Tuesday, offloading equities worth ₹1,919 crore, while domestic institutional investors (DIIs) provided support with net purchases of ₹2,221 crore.
Global cues were mixed. Asian markets showed divergent trends, with Japan’s Nikkei gaining modestly while Hong Kong’s Hang Seng declined. In the US, Wall Street ended lower in the previous session, with the S&P 500 and Nasdaq posting losses amid ongoing geopolitical concerns.
In commodities, crude oil prices eased slightly after recent gains. Brent crude hovered near the $98 per barrel mark, while US West Texas Intermediate traded around $89-90 per barrel, still reflecting supply concerns.
Market experts said investors are closely watching upcoming macroeconomic triggers, including the Reserve Bank of India’s monetary policy committee (MPC) meeting minutes and key global inflation data, for further direction.
Overall, analysts expect the markets to remain range-bound in the near term, with geopolitical developments and crude oil price movements continuing to drive sentiment.
(With agency inputs)
