Indian stock markets ended Wednesday’s session in the red as Sensex slipped 143 points, while the Nifty 50 closed below the 22,850 mark.
Information technology stocks stood out against the broader market trend, with Infosys, HCL Technologies and Tech Mahindra leading the gainers’ list. On the other hand, Bajaj Finance, Eternal and Eicher Motors were among the major losers. Investors also tracked the strong response to Jio Platforms’ initial public offering (IPO) as global uncertainties continued to influence market sentiment.
The session began on a positive note, with the Sensex climbing more than 800 points and the Nifty briefly crossing 23,000. However, the rally failed to hold as investors booked profits and selling spread across several sectors.
Infosys emerged as the biggest Nifty 50 gainer, rising 3.30% to close at Rs 1,168. HCL Technologies advanced 3.21% to Rs 1,424.20, while Tech Mahindra gained 3.13% to Rs 1,834.70.
Tata Consultancy Services (TCS) also performed well, climbing 2.77% to Rs 2,529. UltraTech Cement rounded out the leading gainers, rising 1.87% to Rs 10,849.
The rally in technology shares helped cushion the broader market decline. The Nifty IT index gained around 2.88%, making it the strongest-performing major sectoral index of the session.
Investors showed renewed interest in IT stocks amid expectations of stable earnings and potential benefits from global spending on artificial intelligence. L&T Technology Services was another standout performer, gaining more than 10% following its September-quarter results.
Bajaj Finance was the biggest loser among Nifty 50 stocks, dropping 3.27% to Rs 926. The decline came despite the non-banking financial company reporting a 29% year-on-year increase in consolidated net profit for the July-September quarter. Investors remained cautious about lending margins and potential stress in parts of its loan portfolio.
BSE Ltd fell 2.63% to Rs 3,248.30, while Eternal, the parent company of Zomato and Blinkit, declined 2.45% to Rs 312.35.
Eicher Motors lost 2.43% to Rs 7,170.50, while Trent fell 2.41% to Rs 2,822. The weakness reflected cautious investor sentiment as selling extended beyond the benchmark indices.
The Nifty Bank index declined around 0.92%, while the Nifty Auto index fell approximately 1.54%. Metal stocks also remained under pressure, with the Nifty Metal index dropping around 1.71%.
Rising international crude oil prices remained a major concern for investors. Brent crude traded above $110 a barrel amid geopolitical tensions and worries about potential supply disruptions.
Higher oil prices pose a challenge for India, which imports most of its crude requirements. A sustained increase can raise the country’s import bill, put pressure on the rupee and increase operating costs for businesses. It can also add to inflationary pressures and affect corporate profit margins.
Foreign institutional investor (FII) activity remained another factor influencing market sentiment. Foreign investors had sold Indian equities worth Rs 1,148.64 crore in the previous reported session, while domestic institutional investors purchased shares worth Rs 3,201.19 crore.
Although domestic buying can cushion the impact of foreign outflows, sustained selling by overseas investors may limit a broader market recovery.
Investors also tracked the initial public offering of Jio Platforms, which attracted strong demand after opening for subscription on Wednesday.
The Rs 30,213-crore offering was fully subscribed within hours, according to market reports. The issue is significant for Reliance Industries, which owns Jio Platforms and is bringing its digital services business to the public market.
Reliance shares attracted buying interest during the session, offering some support to the broader market despite weakness across several major sectors. Investors are watching the IPO closely because of Jio’s position in India’s telecom and digital services industries and its ambitions in artificial intelligence.
The market’s inability to sustain its morning rally highlights the cautious mood on Dalal Street. Investors are likely to monitor crude oil prices, foreign fund flows, corporate earnings and global market trends for further direction. The Nifty’s ability to recover above 22,850 and reclaim 23,000 could be important for sentiment in the coming sessions. However, continued pressure on banking, automobile and metal stocks may restrict gains.
For investors, the divergence between IT shares and the broader market underlines the importance of tracking individual sectors rather than relying solely on benchmark movements. Strong quarterly results could support selected stocks, but earnings expectations, valuations and global developments will remain important considerations.
The response to Jio Platforms’ IPO may also influence sentiment towards large companies and upcoming public offerings. Meanwhile, sustained domestic institutional buying could help absorb foreign selling, although the direction of overseas flows remains important.
The immediate outlook will depend on whether buying interest spreads beyond technology stocks and whether crude oil prices ease. Until clearer signals emerge, investors may favour a selective approach, keeping a close watch on support and resistance levels and remaining alert to changes in global risk appetite.