Indian equity markets ended lower on Wednesday after a highly volatile trading session saw the benchmark indices swing sharply between gains and losses. The Sensex, which had climbed more than 500 points during the day, gave up most of its gains in the second half as selling returned. The Nifty 50 also slipped below the 22,650 mark.
The Sensex closed at 72,480.29, down 48.78 points, or 0.07%, while the Nifty ended at 22,620.45, lower by 95.75 points, or 0.42%. Both indices extended their losses for a third consecutive session.
Markets Reverse After Strong Intraday Recovery
The session began cautiously, but buying emerged soon after the opening bell. The Sensex gained more than 300 points and later crossed the 500-point mark, while the Nifty moved above 22,750.
The recovery, however, failed to hold. Selling intensified during the second half, particularly in healthcare and metal stocks, pulling the benchmarks lower. The sharp reversal highlighted the fragile investor sentiment amid concerns over global markets, crude oil prices, foreign fund flows and currency movements.
ICICI Bank, Kotak Bank Among Top Gainers
Banking and select technology stocks provided support to the market. ICICI Bank, Kotak Mahindra Bank, InterGlobe Aviation, Wipro and Tech Mahindra were among the top Nifty gainers.
Kotak Mahindra Bank gained around 2.8%, while ICICI Bank advanced about 2.6%. InterGlobe Aviation, Wipro and Tech Mahindra also ended higher.
Banking stocks remained relatively resilient, with both private and public sector lenders seeing buying interest. The Nifty Bank index gained more than 0.8%, helping cushion some of the broader market weakness.
Max Healthcare, Apollo Hospitals Lead Losers
Healthcare stocks faced intense selling pressure during the session. Max Healthcare, Apollo Hospitals, SBI Life Insurance, Eternal and ONGC were among the biggest Nifty losers.
Apollo Hospitals fell more than 6%, while Max Healthcare declined by over 6%. Eternal dropped more than 2%, while SBI Life Insurance and ONGC also ended lower.
The weakness extended to other hospital stocks. Fortis Healthcare fell nearly 7% and touched a fresh 52-week low, adding to the pressure on the healthcare segment.
Pharma, Healthcare and Metals Under Pressure
Sectoral performance remained mixed. Nifty Media gained around 2.5%, while Realty rose more than 1%. Private banks and PSU banks also closed higher, while IT stocks ended marginally positive.
On the other hand, Nifty Healthcare fell more than 2%, making it one of the weakest-performing sectors. Pharma and Metal indices declined more than 1% each, while Consumer Durables and Consumption stocks also remained under pressure.
Selling in healthcare stocks came amid concerns over medicine pricing and pharmacy margins at corporate hospitals. The issue has attracted attention following discussions during Supreme Court proceedings, adding to uncertainty around the sector.
Broader Market Shows Mixed Performance
The broader market remained relatively resilient compared with the benchmark indices. The Nifty Smallcap index ended slightly higher, while the Midcap index remained broadly flat.
Among midcap stocks, J.K. Cement, LT Technology Services, ICICI Lombard, Prestige Estates and NTPC Green Energy were among the notable gainers.
On the losing side, Fortis Healthcare, Vodafone Idea, United Breweries, Global Health and Tata Elxsi were among the weaker performers.
Market breadth remained mixed, with more than 2,000 stocks declining while a similar number of stocks advanced. Several stocks also touched fresh 52-week lows during the session.
FII Selling Remains a Major Concern
Foreign institutional investor activity continued to weigh on market sentiment. Foreign investors sold Indian equities worth nearly ₹9,980 crore on a net basis on Tuesday, marking their biggest single-day outflow in about four months.
Persistent foreign selling has added pressure to Indian stocks, particularly at a time when global bond yields remain elevated and the rupee is trading close to record-low levels against the US dollar.
Domestic institutional buying has provided some support, but the scale of foreign outflows remains an important factor for the direction of the Indian stock market.
Rupee Recovers Against US Dollar
The Indian rupee recovered modestly on Wednesday after coming under pressure in recent sessions.
The currency closed at ₹95.82 against the US dollar, strengthening 16 paise from Tuesday’s close of ₹95.98. The rupee continues to be influenced by foreign portfolio outflows, movements in the US dollar and global risk sentiment.
Crude Oil, Global Yields Keep Markets Volatile
Investors also kept a close watch on crude oil prices and global bond yields. Oil prices remained elevated amid uncertainty surrounding Iranian supply and sanctions.
Meanwhile, elevated US Treasury yields have continued to influence global equity markets. Higher yields can make dollar-denominated assets more attractive and increase pressure on emerging-market equities.
KPI Green, Power Mech Stocks in Focus
Several individual stocks remained active during Wednesday’s session.
KPI Green Energy declined despite announcing a ₹2,025-crore EPC order for a 500 MW solar project in Rajasthan and plans to acquire wind assets.
Power Mech Projects gained after securing a ₹549.37-crore order from an Adani Group company for operating and maintaining a thermal power plant.
KSB also advanced after receiving an export order worth up to ₹118 crore.
IPO Activity Remains Strong
The primary market remained active, with new listings attracting investor attention. Adroit Industries made a strong debut, listing at ₹250 on the BSE against its issue price of ₹134, a premium of 86.57%.
Swastika Infra also opened at a premium of more than 8%. Meanwhile, Shah Investor’s Home and SRIT India continued to see strong subscription interest during the session.
The Nifty’s ability to hold the 22,600 level will remain closely watched after Wednesday’s sharp reversal from the day’s highs. The market is likely to remain sensitive to global developments as investors assess the direction of Indian equities heading into the October trading series.