Indian benchmark indices opened on a cautious note on Wednesday, with the BSE Sensex at 76,145, down 54 points, while the NSE Nifty 50 stood at 23,798, losing 25 points at 9:15 AM. The domestic market opened after a sharp decline in the previous session, when the Sensex tumbled 893.39 points, or 1.16% to close at 76,200.68, while the Nifty fell 278.80 points, or 1.16% to settle at 23,824.10. During the pre-open session at around 9:02 AM, the Sensex was trading at 77,176.11, up 975.43 points, or 1.28%, while the Nifty was at 23,668.80, down 155.30 points, or 0.65%. The divergent moves in the pre-open session reflected mixed sentiment as investors weighed domestic and global developments ahead of regular trading.
Asian markets traded on a mixed note in early trade on Wednesday, with Japan's Nikkei 225 declining 0.54% while Hong Kong's Hang Seng advanced 0.55%. South Korea's Kospi rebounded with a strong 2.77% gain, supported by heavyweight semiconductor shares as the index recovered from recent global technology-led sell-offs. Wall Street ended sharply lower overnight, with the Dow Jones Industrial Average slipping 0.09% while the S&P 500 fell 1.44% to a more than one-week low. The Nasdaq Composite tumbled 2.21%, with risk-off sentiment spreading across Wall Street amid concerns over rising debt-funded artificial intelligence spending and speculation that the US Federal Reserve could adopt a more hawkish stance.
Progress in the US-Iran peace negotiations has helped ease concerns over potential disruptions to global energy supplies, though uncertainty remains over the durability of the agreement. The Republican-controlled US Senate voted to end the country's military involvement in Iran, with US President Donald Trump announcing that Iran's unfrozen assets would remain under Washington's oversight and could only be used to purchase food and medical supplies from the United States. However, united States and Iran are offering differing accounts on key aspects of the proposed deal, including nuclear inspections and control of the Strait of Hormuz, creating ongoing uncertainty in the negotiations. According to ANI, US Deputy Assistant Secretary in the Bureau of South and Central Asian Affairs, Bethany Poulos Morrison, said Washington is "very, very close" to finalising a historic trade pact with India.
Brent crude prices extended their decline on Wednesday as traders anticipated uninterrupted supply flows through the Strait of Hormuz, with the June Brent crude futures contract trading at $76.85 per barrel on the Intercontinental Exchange, down 0.3%. Oil prices remained near four-month lows after signs emerged that more oil tankers stranded in the Gulf since the start of the Iran conflict could resume movement through the strategic waterway. Gold futures were trading 1.09% lower, while silver futures declined 0.6%, reflecting broader commodity weakness. Investors are also monitoring monsoon progress closely, with rainfall deficiencies in several regions raising concerns over agricultural output, food inflation and rural demand, making weather developments an important factor for markets in the coming weeks.
Foreign institutional investors (FII) bought shares worth ₹17.86 crore on Tuesday while domestic institutional investors bought stocks worth ₹680 crore, as per NSE data. However, FIIs have so far this year sold shares worth ₹2,79,544 crore, data from National Securities Depository Limited (NSDL) showed. The mixed institutional activity reflects cautious sentiment among foreign investors while domestic institutions continue to provide support to the market. The India VIX surged by 8.56% to close at 13.94, indicating a sharp rise in market uncertainty and nervousness among market participants.
