Indian benchmark indices witnessed significant selling pressure as SENSEX fell 150 points to settle at 73,832 while NIFTY50 declined 53 points to close at 23,161 at 3:30 PM. According to Upstox Securities, Infosys, HDFC Bank, HCL Technologies, Mahindra & Mahindra, Tata Consultancy Services, Eternal and Titan were the biggest drags on the SENSEX. The market erased intraday gains as investors resorted to profit booking amid weak cues from global markets after geopolitical tensions in West Asia flared up. As per The Economic Times, the SENSEX had advanced 64 points or 0.09% to close at 73,983 while the NIFTY50 index declined 27 points or 0.12% to settle at 23,215 in the previous session, but current trading showed a more pronounced decline. During the early morning session, the SENSEX declined over 358 points to open at 73,624, while the NIFTY dropped 117 points to open trade at 23,098 at 9:15 AM.
Asian markets ended lower while stocks in Europe were also trading in the red after the United States and Iran carried out a fresh round of military action against each other amid no signs of a peace deal from the third round of ongoing negotiations. According to The Economic Times, Japan's Nikkei fell 1.66%, South Korea's KOSPI dropped 4.52% and Hong Kong's Hang Seng fell 0.64%. In Europe, England's FTSE100 index dropped 0.55%, Germany's DAX declined 0.61% and France's CAC40 index declined 0.22%. As per The Hindu BusinessLine, early optimism fades amid global uncertainty as markets surged in the morning session after a muted opening, supported by easing crude oil prices and stable domestic financial conditions, but sentiment deteriorated sharply in the second half after weak European market openings and renewed geopolitical concerns triggered profit booking across sectors. Brent crude, the global oil benchmark, climbed 1.70% to USD 94.68 per barrel, adding to concerns about inflation and economic stability. According to The Hindu BusinessLine, metal stocks also fell amid weak global commodity prices, a stronger US dollar and concerns around slowing industrial demand in China, which weighed heavily on the sector.
Selling pressure was broad based as 12 of 15 major sector gauges compiled by the National Stock Exchange (NSE) ended lower led by the NIFTY Media index's over 2% fall. As reported by The Economic Times, NIFTY Realty, Metal, PSU Bank, IT, Consumer Durables, Oil & Gas, IT and Pharma indices also fell between 0.5% and 1.5%. On the flip side, private bank and financial services indices managed to close higher. According to The Hindu BusinessLine, metal stocks also fell amid weak global commodity prices, a stronger US dollar and concerns around slowing industrial demand in China, which weighed heavily on the sector. Hindalco Industries, Tata Steel, Vedanta and Hindustan Zinc witnessed sharp selling pressure as investors moved away from cyclical sectors. FMCG stocks outperformed the broader market amid expectations of price hikes, while private banking stocks gained after the Reserve Bank of India eased FCNR(B) deposit and ECB norms. The broader market witnessed sharper selling pressure, with Nifty Midcap100 declining 1.49% and Nifty Smallcap100 falling 1.33%, reflecting a cautious undertone across the broader market.
Foreign Institutional Investors (FIIs) sold equities worth ₹2,124.98 crore on Wednesday, adding to the negative sentiment in Indian markets. According to The Hindu BusinessLine, market breadth also remained negative. Of the 4,369 stocks traded on the BSE, 1,473 advanced, while 2,747 declined and 149 remained unchanged. Around 115 stocks touched their 52-week highs, while 77 stocks hit fresh 52-week lows. Vinod Nair, Head of Research at Geojit Investments, noted that domestic equities ended lower amid weak global cues, as investors turned cautious ahead of a key US inflation print likely to influence the Fed's policy trajectory. Ajit Mishra, SVP, Research at Religare Broking, stated that a sharp decline in heavyweight stocks across sectors wiped out early gains and dragged the benchmark lower. Buying interest continues to emerge around the 23,000–23,100 zone, with the expected trading range for Nifty being 23,000–23,550, with 23,200 acting as immediate support, 23,000–23,100 as positional support, and 23,450–23,550 as the key resistance zone. The escalation pushed Brent crude futures up 1.9% to $95 per barrel, while the combined impact of geopolitics, artificial intelligence and El-Nino risk has resulted in a subdued sentiment in Indian markets, particularly among foreign investors as per Reuters citing Citi Research analysts.
The IT sector faced significant pressure with the IT index falling on the day, taking its 2026 losses to 27% so far as concerns over AI-led disruption continued to weigh on earnings expectations. According to Reuters, "Sentiment remains cautious on the sector, with investors expressing frustration that IT companies have not invested sufficiently to manage and mitigate technology-related risks," said Yogesh Aggarwal, head of research of India at HSBC Securities and Capital Markets. US consumer inflation increased in May at its fastest pace in three years, raising the risk of a prolonged period of high interest rates, which tends to reduce the appeal of emerging market equities for foreign investors and may also weigh on US growth, pressuring export-facing sectors such as information technology. Foreign portfolio investors have offloaded domestic equities worth an unprecedented $30.4 billion in 2026 so far, with the Nifty down about 12% year-to-date.
