Benchmark indices extended their losing streak on Wednesday, weighed down by elevated crude oil prices and rising global bond yields as investors remained cautious ahead of the US Federal Reserve’s FOMC minutes.
The Nifty 50 fell 76.60 points, or 0.32%, to close at 24,078.30, while the BSE declined 325.78 points, or 0.42%, to 76,909.68. The Nifty has now fallen for seven straight sessions, its longest losing streak in 11 months, while the Sensex declined in six of the last seven sessions.
Brent crude rose to around $92 a barrel, its highest level in three weeks, while WTI crude was at $85.84. Oil prices remained elevated as uncertainty over the Middle East conflict continued, with hopes of a diplomatic resolution still limited.
US President Donald Trump had said on Tuesday that no talks were underway with Iran and that the Strait of Hormuz remained open.
Vinod Nair, Head of Research, Geojit Investments Limited, said markets turned cautious ahead of the release of the US FOMC minutes, with investors concerned that the Federal Reserve’s fight against inflation could continue.
“The lack of a diplomatic resolution following the end of the U.S.-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment,” Nair said.
IT stocks were a notable exception to the broader weakness, with the Nifty IT index rising 0.73% as investors looked for value after the recent correction. A weaker rupee also provided some support to IT companies, which earn a significant portion of their revenue in foreign currencies.
HCLTech was the top Sensex gainer, rising 1.73%, while Eternal gained 1.33% and Kotak Mahindra Bank advanced 1.23%. Sun Pharma rose 1.15%, while Titan and TCS gained 0.27% and 0.26%, respectively. Infosys also edged up 0.18%.
Nair said IT stocks outperformed on value buying and support from the weaker rupee.
Power Grid was the biggest Sensex loser, falling 2%, followed by Bajaj Finance, which declined 1.31%. Larsen & Toubro fell 1.27%, while Hindustan Unilever and Reliance Industries dropped 0.98% and 0.90%, respectively.
Asian Paints fell 0.42%, HDFC Bank declined 0.42%, while Tata Steel and NTPC lost 0.65% and 0.67%, respectively. SBI fell 0.73%, while Axis Bank and ICICI Bank declined 0.70% and 0.66%.
The broader market remained under pressure. Nifty 100 fell 0.36%, while Nifty 200 and Nifty 500 declined 0.33% and 0.37%, respectively.
The Nifty Midcap 50 was marginally higher at 0.02%, while the Nifty Midcap 100 fell 0.21%. The Nifty Smallcap 100 declined 0.51%.
India VIX, however, fell 0.50% to 11.33, indicating that volatility remained relatively contained despite the continued decline in the benchmarks.
Among sectoral indices, Nifty IT was the strongest performer, rising 0.73%. Nifty Midcap Financial Services gained 0.14%, while Nifty Midcap IT & Telecom advanced 0.25.
On the other hand, Nifty Chemicals fell 1.03%, Nifty Media declined 0.91% and Nifty MidSmall Healthcare dropped 0.88%. Nifty FMCG fell 0.55%, while Nifty Oil & Gas declined 0.48%.
Nifty Financial Services 25/50 slipped 0.38%, Nifty Auto fell 0.27% and Nifty Pharma declined 0.18%.
Nair said the Q1 FY27 earnings season had generally exceeded expectations, reinforcing confidence in earnings resilience. However, he cautioned that with temporary market tailwinds fading, the next phase of market performance would depend largely on the stability of crude oil supply chains.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)