Stock markets fall in early trade dragged by IT firms

Mumbai: Benchmark equity indices Sensex and Nifty declined in early trade on Wednesday after a three-day rally, dragged by heavy selling in IT stocks.

Foreign fund outflows and fears of possibility of prolonged instability in West Asia also dented markets' sentiment.

The 30-share BSE Sensex declined 494.12 points to 78,779.21 in early trade. The 50-share NSE Nifty dropped 142.2 points to 24,434.40.

From the 30-Sensex firms, HCL Tech tumbled nearly 9 per cent after its March quarter earnings failed to cheer investors.

HCL Tech on Tuesday reported a 4.20 per cent on-year rise in consolidated net profit to Rs 4,488 crore for March quarter FY26, even as the management flagged a highly volatile demand environment shadowed by tariffs and softened discretionary spends, giving a FY27 growth guidance of 1-4 per cent.

Tech Mahindra, Infosys, Tata Consultancy Services, ICICI Bank and Asian Paints were also among the major laggards.

NTPC, Hindustan Unilever, Trent and Tata Steel were among the winners.

Brent crude, the global oil benchmark, traded 0.40 per cent lower at USD 98.09 per barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,918.99 crore on Tuesday, according to exchange data.

In Asian markets, South Korea's benchmark Kospi and Hong Kong's Hang Seng index traded lower, while Japan's Nikkei 225 index and Shanghai's SSE Composite index quoted in positive territory.

US markets ended lower on Tuesday.

"The primary overhang stems from developments surrounding the US–Iran situation. With the ceasefire deadline now passed and no concrete progress on a lasting agreement, concerns around a potential escalation have resurfaced," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Iran’s stance against negotiations under pressure has further intensified fears of renewed conflict or disruption in critical trade routes such as the Strait of Hormuz, he added.

On Tuesday, the Sensex jumped 753.03 points or 0.96 per cent to settle at 79,273.33. The Nifty climbed 211.75 points or 0.87 per cent to end at 24,576.60.