Stock markets snap 3-day rally; Sensex tumbles 757 points dragged by IT shares, jump in oil prices

Mumbai: Benchmark equity indices Sensex and Nifty tumbled nearly 1 per cent on Wednesday, snapping a three-day gaining streak due to heavy selling in IT stocks and an uptick in crude oil prices.

The 30-share BSE Sensex tanked 756.84 points or 0.95 per cent to settle at 78,516.49. During the day, it slumped 831.03 points or 1.04 per cent to 78,442.30.

The 50-share NSE Nifty dropped 198.50 points or 0.81 per cent to end at 24,378.10.

Foreign fund outflows and fears of prolonged instability in West Asia also dented market sentiment.

Among 30-Sensex firms, HCL Tech tumbled the most by 10.85 per cent after its March quarter earnings failed to cheer investors. HCL Tech reported a 4.20 per cent on-year rise in consolidated net profit to Rs 4,488 crore for the March quarter, 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.

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

Hindustan Unilever, NTPC, Eternal and Trent were among the winners.

Brent crude, the global oil benchmark, traded 1.26 per cent higher at USD 99.72 per barrel.

"Indian equity markets traded with a clear negative bias throughout the session, weighed down by persistent geopolitical tensions in the Middle East and the continued closure of the Strait of Hormuz. Despite the ceasefire extension, the continued US blockade and the unresolved situation in the Strait of Hormuz kept energy markets elevated," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

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

"The primary trigger behind today’s weakness was the resurgence of geopolitical uncertainty. Reports of stalled US–Iran negotiations have reignited concerns over prolonged instability in West Asia, keeping risk appetite in check. This has also supported elevated crude oil prices, adding pressure on inflation expectations and currency stability," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

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

Markets in Europe were trading on a mixed note. US markets ended lower on Tuesday.

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.