The Indian stock market fell on Wednesday, with both benchmark indices falling nearly 0.5%, weighed down by a broad-based selloff led by Defence stocks. Weakness in heavyweight counters, including TCS, HDFC Bank, Infosys also dragged the overall market lower.
The Sensex declined 412 points, or 0.53%, to 76,823.91, while the Nifty 50 fell 127 points, or 0.53%, to 24,027.90.
Broader markets also remained under pressure, with the Nifty Smallcap 100 and Nifty Midcap 100 indices declining 0.3% each.
Among sectors, the Nifty Defence index emerged as the biggest laggard, falling more than 1.4%, followed by the Nifty Enery, Fianncial Services, Metal indices. On the other hand, the Nifty IT and Nifty Realty indices traded in positive territory.
Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities says, "“Risk appetite in the market appears to have weakened considerably, with Nifty 50 witnessing sustained and gradual selling pressure over the past 12 trading sessions. The primary factor weighing on investor sentiment has been the sharp surge in crude oil prices, as the geopolitical situation in West Asia continues to show little sign of easing."
Here are five key reasons why Indian stock market is falling today:
US-Iran War
Uncertainty surrounding a potential US-Iran peace deal and the reopening of the Strait of Hormuz continued to weigh on investor sentiment.
Trump said the US has no ongoing talks with Tehran and is preparing to intensify economic pressure on Iran, with Washington continuing its blockade of Iranian ports. US Treasury Secretary Scott Bessent has also indicated that new, tougher measures could be announced this week.
The pressure is already spilling into the wider region. The United Arab Emirates said it would suspend trade and financial transactions with Iran, citing escalating regional tensions. The UAE, located across the Persian Gulf from Iran, has itself faced repeated attacks, particularly targeting shipping.
Global Markets
Wall Street futures were mixed in early trade after US stocks ended lower in the previous session. Dow futures rose 46 points, while S&P 500 futures slipped 0.1% and Nasdaq 100 futures fell 0.2%.
The cautious tone follows another weak session for US equities. The Dow declined 0.2%, the S&P 500 fell 0.7%, and the Nasdaq Composite dropped 1.3%, with technology and AI-linked stocks among the pressure points.
Asian markets extended the risk-off mood. South Korea's Kospi was among the biggest decliners, falling more than 5%, while Japan's Nikkei dropped over 3%. China's CSI 300 also declined, while Hong Kong's Hang Seng edged higher. The selloff in Asian technology stocks came as investors reassessed AI-related valuations and faced pressure from elevated bond yields.
Crude Oil Prices
Oil prices extended their gains for a fourth straight session as hopes of a near-term end to the nearly six-month US-Iran conflict remained elusive. Brent crude moved closer to $92 a barrel, while West Texas Intermediate traded around $86.
Traffic through the key waterway, which connects Persian Gulf oil producers with international markets, remained subdued. On Tuesday, the UK said a vessel departing the strait was struck by a projectile, leaving one person dead. Tracking data on Wednesday showed two supertankers linked to Chinese interests turning back, highlighting continued caution among shipping operators.
Technical View
According to Shah, the zone of 24,020 – 24,000 will act as a crucial support for the Nifty 50 index, while resistance is placed in the 24,140 – 24,160 zone.
“On the downside, if the Nifty 50 index slips below the 24,000 level, the next support is placed in the 23,850 zone. In the event of a sustained move above 24,160, the index could experience an extension of the rally towards 24,280,” Shah added.
On the Nifty options front, meaningful call writing was witnessed across the 24,200 and 24,300 strikes. On the put side, 24,000 has substantial open interest, followed by the 23,800 strike.
For Sensex, support is placed at 76,600, while resistance is placed at 77,200, he added.
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