Indian equity benchmarks opened sharply lower on Wednesday amid weak global cues and rising tensions between the United States and Iran, triggering broad-based selling across sectors including banking, metals and infrastructure.
The BSE Sensex declined 1,741.71 points, or 2.17 percent, to 78,497.14, while the Nifty 50 fell 512.60 points, or 2.06 percent, to 24,353.10. The Nifty slipped below the 24,400 level. Markets had remained closed on Tuesday on account of Holi, and selling pressure intensified when trading resumed after the two-day break.
Broad-based selling dominated the market from the opening session. Of the 50 stocks in the Nifty 50 index, 44 were trading in negative territory while only six registered marginal gains, indicating that the decline extended across the broader market rather than being confined to a limited set of stocks.
Banking, auto, metal, capital goods and infrastructure sectors recorded notable declines during early trade as investors reduced risk exposure.
Limited Gains in Select IT and Defensive Stocks
Amid the broader decline, select information technology and defensive stocks recorded marginal gains.
Infosys was among the top gainers, rising approximately 1.59 percent. Bharat Electronics Limited, HCLTech, Tata Consultancy Services and ITC also registered limited advances.
The information technology sector is often considered relatively defensive during periods of market volatility, particularly when the rupee weakens. However, the gains in IT stocks remained limited and did not offset the broader market decline.
Sharp Declines in L&T, IndiGo and Tata Steel
Several large-cap stocks witnessed significant selling pressure during the decline. Larsen & Toubro fell about 6.05 percent, making it the top loser during early trade, with infrastructure and capital goods stocks seeing substantial selling.
InterGlobe Aviation, Tata Steel, Adani Ports and Special Economic Zone, Mahindra & Mahindra and Bajaj Finance also declined between 3 percent and 4 percent.
Banking stocks remained under pressure, with HDFC Bank, ICICI Bank and Kotak Mahindra Bank trading lower. In the automobile sector, Maruti Suzuki also recorded declines.
Negative Signals From Asian Markets
Weakness in Indian markets also reflected broader declines across Asian equities. South Korea’s Kospi dropped nearly 7 percent in early trade, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng also traded lower.
Uncertainty in global markets has continued to influence emerging market equities, with foreign investors reducing exposure to risk assets.
Rising US–Iran Tensions
Escalating tensions involving the United States, Israel and Iran in the Middle East have increased volatility across global markets, raising concerns over crude oil supply.
Brent crude was trading around $82 per barrel. Rising oil prices remain significant for import-dependent economies such as India and could increase pressure on inflation and the current account.
Geopolitical tensions have also led investors to shift toward perceived safe-haven assets, reflected in firm gold prices.
IPO Market Activity Continues
Despite the decline in secondary markets, activity in the primary market has continued. The Sedemac Mechatronics initial public offering opened for subscription on Wednesday. The issue size is ₹1,087.45 crore and the offering will close on Friday.
Meanwhile, Wednesday marks the final day for bidding in the AceTech E-Commerce IPO. Share allotment may be finalised on Thursday, with a potential listing expected on March 9.
