Benchmark indices opened lower on Wednesday, weighed down by a sharp selloff in IT stocks after HCL Technologies flagged a weak earnings outlook. According to reports from The Hindu BusinessLine, the Sensex, which closed at 79,273.33 on Tuesday, opened at 79,019.34 and was trading at 78,877.66, down 395.67 points or 0.50 per cent as of 9.16 am. The Nifty 50, which had closed at 24,576.60, opened at 24,470.85 and was at 24,474.60, down 102 points or 0.42 per cent at the same time. The decline came after a strong run-up, with Nifty having gained nearly 10 per cent so far in April. The gap-down opening was in line with GIFT Nifty signals, which were trading around 24,455, down 120 points ahead of the session.
HCL Technologies was the biggest drag on the Nifty, crashing 7.34 per cent to ₹1,335.40 after its weak commentary rattled investor confidence in the sector. As reported by The Hindu BusinessLine, Tech Mahindra fell 3.82 per cent to ₹1,443.40, Infosys dropped 2.67 per cent to ₹1,278.20, TCS shed 1.70 per cent to ₹2,566.10, and Wipro declined 1.04 per cent to ₹202.88. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that "IT, following the weak commentary from HCL Tech yesterday, is again likely to go into correction mode." The selloff wiped out gains made in the previous session and put the broader IT index under pressure.
On the gainers' side, consumer and retail stocks provided some cushion to the broader market decline. According to The Hindu BusinessLine, Trent rose 1.31 per cent to ₹4,447.80, Nestle India gained 1.19 per cent to ₹1,396.30, and Hindustan Unilever advanced 0.62 per cent to ₹2,325.10. Adani Enterprises edged up 0.56 per cent to ₹2,238.50, while Bajaj Finance added 0.46 per cent to ₹943.15. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that "for day traders, 24,500 will act as an immediate support zone. Above this level, the market could continue its positive move towards 25,750–25,800."
Global cues remained mixed with Brent crude trading in the $97–101 per barrel range, with June Brent futures at $98.40, down 0.08 per cent, while WTI crude was at $89.46, down 0.23 per cent. As reported by The Hindu BusinessLine, on MCX, May crude oil futures were at ₹8,398, down 0.46 per cent. The elevated crude prices continue to be a concern for India's inflation and fiscal outlook. US President Donald Trump extended the ceasefire with Iran indefinitely, but uncertainty over the durability of talks kept energy markets on edge. Disruptions around the Strait of Hormuz continued to keep physical oil premiums elevated.
According to provisional data for April 21, Foreign Institutional Investors were net sellers with outflows of ₹1,919 crore, while Domestic Institutional Investors were net buyers with inflows of ₹2,221 crore. As reported by The Hindu BusinessLine, India VIX cooled to around 17.53, declining nearly 6 per cent, signalling some easing of near-term volatility. Analysts broadly maintained a cautious but positive medium-term outlook, with 24,300–24,400 identified as key support and 24,850–25,000 as the next major resistance zone. Gaurav Udani, Founder of ThinCredBlu Securities, said, "Despite the mild dip, the index continues to trade above the 24,400 breakout zone, which keeps the overall structure positive."
