Benchmark indices snapped a three-session winning streak on Wednesday, pulled lower by a sharp sell-off in IT stocks and renewed geopolitical uncertainty, as stalled US-Iran peace talks dampened the optimism that had driven markets higher in recent days.

The Nifty 50 fell 198.50 points, or 0.81 per cent, to close at 24,378.10, while the Sensex dropped 756.84 points, or 0.95 per cent, to settle at 78,516.49.

The primary drag came from the Nifty IT index, which shed nearly 4 per cent, as disappointing earnings and cautious guidance from heavyweights rattled investor confidence.

HCL Technologies was the session’s standout loser, declining nearly 10 per cent on weak Q4 numbers. The negative read-across pulled Infosys, TCS, and mid-cap IT names sharply lower.

The sell-off also reflected deeper structural concerns — slowing global tech spending and rising AI-linked investment costs are beginning to compress margin expectations across the sector.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the market slipped below a key level early in the day: “...after a gap-down open, the market slipped below the 24,500/79,000 support zone and throughout the day faced consistent selling pressure at higher levels...” He added that as long as Nifty trades below 24,500, weak sentiment is likely to persist, with further downside possible toward 24,200.

Geopolitics added to the pressure. US President Donald Trump’s unilateral extension of the ceasefire, without clear alignment from Iran, failed to reassure markets.

The continuation of the US naval blockade and the unresolved Strait of Hormuz situation kept risk appetite subdued. Bhuvan Gupta, CIO at Client First Capital, flagged the longer-term economic implications: “...our reliance on the West Asian region for 60 per cent of our energy needs will certainly begin to show up on the books of Indian corporates...”

He cited preliminary estimates of a 9–10 per cent potential cut to FY27 corporate earnings, contingent on crude staying in the $80–$120 range and a swift resolution to the conflict.

Not all sectors were in the red. Energy and defence stocks rallied over 1 per cent, supported by elevated crude and sustained geopolitical tension.

FMCG provided relative stability, with strong quarterly earnings from Nestle India supporting the sector. Nifty Chemicals, Realty, and Oil & Gas also closed with gains. Crucially, broader markets outperformed the benchmarks — the Nifty Midcap 100 rose 0.19 per cent and the Smallcap 100 gained 1.13 per cent, pointing to selective buying interest even as frontline indices fell.

On the BSE, 2,391 stocks advanced against 1,895 declines, a markedly narrower breadth compared to Tuesday. India VIX rose over 4 per cent to above 18.26, signalling a pickup in near-term risk perception. Meanwhile, 152 stocks hit 52-week lows — a figure worth watching.

The rupee extended its losing run, weakening toward 93.80 against the dollar, its third consecutive session of decline. Persistent FII outflows, dollar strength, and elevated crude kept the currency under pressure. Brent crude hovered near $95 per barrel, with domestic crude futures around ₹8,500, adding to inflation and import bill concerns.

Precious metals found buyers in the uncertainty. Gold rose nearly 1 per cent and silver advanced over 1.8 per cent in domestic markets, with safe-haven demand intact. Technically, gold support is pegged near ₹1,51,000, with resistance around ₹1,55,000, though conflicting signals from the White House on ceasefire terms are keeping the metal volatile.

Abhinav Tiwari, Research Analyst at Bonanza, summed up the mood: “...until stability returns, we are likely to prefer selective stock picking over broad market exposure...”

Looking ahead, all eyes remain on the trajectory of US-Iran negotiations, with any breakdown in talks seen as a key downside risk. The US Fed policy decision on April 29 will be the next major macro trigger.

Domestically, the earnings calendar remains active, with results from SBI Life, Trent, Tech Mahindra, and Havells expected to drive stock-specific moves.

On a longer arc, Vikas Gupta of OmniScience Capital maintained that “...market is significantly undervalued and even at moderate earnings growth rate returns are likely to be quite rewarding for long-term investors who can tolerate volatility...” — projecting Nifty in the 28,000–31,000 range by March 2027.

Published on April 22, 2026