Indian benchmark indices began Wednesday’s session on a subdued note, with selling pressure weighing on equities despite US President Donald Trump announcing an extension of the US-Iran ceasefire.
The BSE Sensex dropped around 500 points in early trade to hover near 78,800, while the Nifty 50 declined over 140 points to trade close to 24,430.
Losses were led by IT, banking and healthcare stocks, including ICICI Bank, Axis Bank, HCLTech and Apollo Hospitals, while sectors such as FMCG and metals showed relative strength.
Market volatility also edged higher, with the India VIX rising by about 3 per cent, indicating increased nervousness among investors.
Analysts noted that the market is likely to remain range-bound in the near term. While the broader trend continues to be positive, they pointed to profit booking at elevated levels and sustained foreign institutional investor (FII) outflows as factors limiting further gains. Steady buying by domestic institutional investors (DIIs) is expected to provide support on declines.
Data from the previous session showed FIIs offloading equities worth Rs 1,919 crore, whereas DIIs purchased shares worth Rs 2,221 crore, helping cushion the fall.
Globally, sentiment remained mixed. Asian markets showed divergent trends, while US equities ended lower overnight, with the S&P 500 and Nasdaq Composite both closing in negative territory.
Crude oil prices moved higher, with Brent crude hovering near the $100 per barrel mark and US WTI trading above $90.
The continued naval blockade and congestion around the Strait of Hormuz have kept energy markets on edge despite the ceasefire extension.
Overall, investors remain cautious as global geopolitical tensions and mixed institutional flows continue to influence market direction.
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