Stock markets snap three-day rally; Sensex tumbles 757 points

mumbai

Benchmark equity indices Sensex and Nifty tumbled nearly 1% on Wednesday, snapping a three-day gaining streak due to heavy selling in IT stocks and an uptick in crude oil prices.

The 30-share BSE Sensex tanked 756.84 points or 0.95% to settle at 78,516.49. During the day, it slumped 831.03 points or 1.04% to 78,442.30. The 50-share NSE Nifty dropped 198.50 points or 0.81% to end at 24,378.10. Foreign fund outflows and fears of prolonged instability in West Asia also dented market sentiment.

Among 30-Sensex firms, HCL Tech tumbled the most by 10.85% after its March quarter earnings failed to cheer investors. The company reported a 4.20% on-year rise in consolidated net profit to ₹4,488 crore for the March quarter, even as the management flagged a highly volatile demand environment shadowed by tariffs and softened discretionary spends, giving a FY27 growth guidance of 1-4%.

Infosys, Mahindra & Mahindra, Tata Consultancy Services, Tech Mahindra and ICICI Bank were also among the major laggards. 

"Indian equity markets traded with a clear negative bias throughout the session, weighed down by persistent geopolitical tensions in the Middle East and the continued closure of the Strait of Hormuz. Despite the ceasefire extension, the continued US blockade and the unresolved situation in the Strait of Hormuz kept energy markets elevated," Ponmudi R, CEO of Enrich Money, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,918.99 crore on Tuesday, according to exchange data.

"The primary trigger behind today’s weakness was the resurgence of geopolitical uncertainty. Reports of stalled US-Iran negotiations have reignited concerns over prolonged instability in West Asia, keeping risk appetite in check. This has also supported elevated crude oil prices, adding pressure on inflation expectations and currency stability," Hariprasad K, research analyst and founder of Livelong Wealth, said.