The Indian stock market crashed on Wednesday, with both benchmark indices falling nearly 1%, weighed down by a broad-based selloff led by IT stocks. Weakness in heavyweight counters, including TCS, HDFC Bank, Infosys and Reliance Industries, also dragged the overall market lower.
The Sensex declined 605.29 points, or 0.77%, to close at 77,548.96, while the Nifty 50 fell 186.55 points, or 0.76%, to 24,284.50. The Bank Nifty bucked the broader trend and gained 0.13%.
Broader markets also remained under pressure, with the Nifty Smallcap 100 and Nifty Midcap 100 indices declining 0.2% each.
Among sectors, the Nifty IT index emerged as the biggest laggard, falling more than 2%, followed by the Nifty Realty, Nifty FMCG, Nifty Oil & Gas and Nifty Auto indices. On the other hand, the Nifty PSU Bank and Nifty Metal indices traded in positive territory.
ALSO READ: N Chandra Steps Down As Tata Sons Chairman — Five Key Points From Letter To Board
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.
In the latest development, US President Donald Trump said the US is “in total control” of the crucial waterway. However, Iran has maintained that the Strait of Hormuz will remain closed until the US agrees to its conditions.
The uncertainty over the geopolitical situation and its potential impact on global trade and energy supplies has kept investors cautious.
Global Markets
Global markets traded mixed on Wednesday amid continued uncertainty over the US-Iran conflict.
In Europe, the pan-European Stoxx 600 was largely flat. The UK's FTSE 100 fell 0.07%, while Germany's DAX gained 0.05%. France's CAC 40 declined 0.21%.
Asian markets were mixed, although Japanese and South Korean equities rebounded. The Nikkei 225 rose 0.83%, while the broader Topix gained 0.94%. South Korea's Kospi rallied 3.68%.
ALSO READ: Rs 63,000 Crore Gone In One Hour As Tata Group Stocks Slide After N Chandrasekaran Steps Down
IT Stocks Selloff
IT stocks witnessed a sharp selloff, with the Nifty IT index falling as much as 2.59% during the session.
Tata Consultancy Services (TCS) emerged as the biggest laggard in the IT pack, with its shares falling nearly 6%. The decline came after Tata Sons Chairman Natarajan Chandrasekaran announced on Wednesday that he would step down from his position, days ahead of the group's AGM scheduled for August 18, 2026.
The announcement triggered selling across Tata Group stocks, with TCS witnessing the sharpest decline among the major counters.
Crude Oil Prices
Elevated crude oil prices remained another key concern for investors, as a sustained rise in energy prices could fuel inflationary pressures and potentially delay interest-rate cuts or lead to tighter monetary policy.
Brent crude futures rose 0.92% to $89.73 a barrel, while West Texas Intermediate (WTI) crude gained 0.91% to $83.96 a barrel.
Technical View
From a technical perspective, the Nifty 50 slipped below the 24,300 level, while the Sensex fell below 77,600.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the 24,160–24,140 zone will act as a crucial support area for the Nifty 50, while resistance is seen in the 24,430–24,450 range.
“On the downside, if the Nifty 50 index slips below the level of 24,140, then the next support is placed in the zone of 24,020–24,000. In an event of a surge above 24,450, the index can experience an extension of the rally towards 24,600,” Shah said.
On the options front, meaningful call writing was seen at the 24,300 and 24,400 strikes. On the put side, the 24,200 strike has substantial open interest, followed by the 24,100 strike.
For the Sensex, Shah sees support at 77,200, while resistance is placed at 78,000.
ALSO READ: Catch Stock Market Live Updates Here
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.