Domestic equity benchmarks BSE Sensex and NSE Nifty snapped their three-day winning run on Wednesday to end the session in the red, dragged by heavy selling pressure in IT stocks amid the extension of the US-Iran ceasefire.

At close, the Sensex declined 756.84 points, or 0.95 per cent, to close at 78,516.49, while the Nifty slipped 198.50 points, or 0.81 per cent, to settle at 24,378.10.

Top gainers & losers

Among Sensex constituents, HCL Technologies emerged as the top loser, plunging 10.85% to Rs 1285.20. Infosys followed with a 3.40% drop, while Mahindra & Mahindra (M&M), Tata Consultancy Services (TCS), Tech Mahindra, and ICICI Bank slipped 2.99%, 2.80%, 2.50% and 1.50%, respectively.   

While Hindustan Unilever (HUL), NTPC and Eternal were among the gainers on the 30-pack index, which rose up to 2.56%. 

Despite the ceasefire extension, global markets remained risk-off, as uncertainty surrounding US-Iran talks and ongoing shipping disruptions kept investors cautious, said Vinod Nair, Head of Research, Geojit Investments Ltd.

“The rebound in crude prices to ~$100/bbl, coupled with persistent geopolitical uncertainty, led investors to book profits after the equity market’s sharp ~10% rise from recent lows,” Nair added.

Five stocks, namely HDFC Bank, HCL Tech, Infosys, ICICI Bank and M&M, contributed largely to the Sensex’s fall.  
Among sectoral indices, the BSE IT index plunged 3.66% to close at 29,511.62, while the BSE Bankex index edged down 0.39% to close at 64,407.85.

Rising volatility, geopolitical uncertainty, and sectoral weakness, particularly in IT, are expected to keep markets range-bound in the short term, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. 

“The broader structure remains intact, but sustaining momentum will require stability in global cues and improved earnings visibility,” Hariprasad said.