The markets came under heavy selling pressure on Wednesday, with the Sensex plunging 813.35 points and the Nifty 50 slipping below 23,450, as rising crude oil prices, escalating US-Iran tensions and heavy selling in IT stocks rattled investors.
The Sensex fell 1.08% to close at 74,764.23, while the Nifty declined 203.60 points, or 0.86%, to settle at 23,431.50. Both benchmarks ended at their lowest levels since June 11, extending their decline to a third straight session.
The sell-off was broad-based, with IT stocks bearing the brunt of the pressure. The Nifty IT index fell 3.24%, making it the worst-performing major sectoral index. Investors remained cautious about global technology spending, US interest rates and the impact of elevated crude prices on the broader economy.
Infosys emerged as the biggest Nifty 50 loser, falling 4.34%, while HCL Technologies declined 4.55%, Tech Mahindra lost 3.87%, HDFC Life slipped 2.23% and Wipro also featured among the major laggards. TCS fell 2.26%, adding to the pressure on the IT-heavy benchmark.
The weakness in technology stocks came alongside growing concerns about the global economic outlook. Higher US bond yields and expectations surrounding the Federal Reserve’s next interest-rate decision have made investors more cautious about growth-oriented sectors such as information technology.
At the other end of the market, Adani Enterprises was the top Nifty gainer, rising 5.13%. Adani Ports gained 3.67%, while Max Healthcare, Coal India and Tata Steel were also among the stocks that ended higher. Tata Steel rose 2.42%, supported by strength in metal stocks.
Adani Enterprises received a boost after the group announced that Adani Airport Holdings would raise around $1 billion through an equity investment from global investors including Temasek, BlackRock, Alpha Wave Global and Premji Invest. The transaction is expected to support the expansion and modernisation of its airport business.
The contrasting performance of individual stocks highlighted the uneven nature of Wednesday’s session. While technology companies faced intense selling, metal and energy stocks found some support. The Nifty Metal index rose 1.79%, while the energy index gained around 0.6%.
The biggest concern for investors remained crude oil. Brent crude moved above the psychologically important $100-a-barrel level as tensions between the US and Iran escalated. Higher oil prices are particularly worrying for India because the country depends heavily on imports to meet its energy requirements.
A prolonged rise in crude could increase India’s import bill, put pressure on inflation and weigh on the rupee. The Indian currency slipped further on Wednesday, closing at around ₹95.10 against the US dollar, compared with ₹94.82 in the previous session.
Foreign investor activity added to the pressure. Overseas funds have remained cautious towards Indian equities amid geopolitical uncertainty, elevated commodity prices and concerns over global interest rates. Domestic institutional investors, however, continued to provide some support to the market.
The sell-off was not restricted to large-cap stocks. The Nifty Midcap and Smallcap indices both declined, although their losses were smaller than those of the benchmark indices. Market volatility also increased as investors responded to developments in global markets and the Middle East.
The geopolitical situation has become a key driver for Dalal Street. Fresh developments in the US-Iran conflict have raised fears of disruption to energy supplies, pushing investors towards safer assets and away from riskier equities. The possibility of crude remaining above $100 for an extended period has further complicated the outlook for India’s inflation and economic growth.
The IT sector faced an additional challenge from expectations of higher US interest rates. Since the United States is a major market for Indian technology companies, concerns over corporate technology spending and economic growth can quickly affect sentiment towards IT stocks.
Company-specific developments also influenced trading. Coforge shares fell sharply after chairman O P Bhatt resigned following concerns raised by an internal audit over the company’s board evaluation process. The development added to pressure on the broader IT segment.
By the closing bell, the market had painted a clear picture of risk aversion. Adani Enterprises, Adani Ports and Tata Steel were among the notable gainers, while Infosys, HCL Technologies and Tech Mahindra led the losses.
Wednesday’s session showed once again how quickly global developments can ripple through Indian markets. With the Sensex below 75,000 and the Nifty close to 23,400, investors are likely to remain cautious until there is greater clarity on crude prices, foreign fund flows and global interest-rate expectations.