The benchmark BSE Sensex slipped 245 points, or 0.29%, to end at 83,382.71, while the NSE Nifty 50 fell 66.7 points, or 0.26%, to 25,665.60. The decline marked the seventh loss in eight sessions for both indexes, reflecting fragile investor sentiment despite pockets of sectoral strength.
Losses on the 30-stock Sensex were led by Tata Consultancy Services, Asian Paints, Maruti Suzuki, Sun Pharma and Hindustan Unilever, each sliding between 1.5% and 2%.
Shares of state-owned lenders bucked the broader weakness, with the PSU bank index climbing 2.1% after strong earnings. Union Bank of India surged 7.9% and Indian Overseas Bank rose 2.2% following higher quarterly profits.
Still, declines in heavyweight HDFC Bank, down 1.3%, and IT bellwether Tata Consultancy Services, off 2.3%, weighed on the main indexes.
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Separately, Tata Elxsi sank 5% after reporting a drop in quarterly profit.
Expert views
Domestic markets remained cautious amid lingering uncertainty over the India–US trade deal, with FIIs staying risk-averse, said Vinod Nair, Head of Research at Geojit Investments, adding that the restart of negotiations this week has instilled renewed hopes. “Metals led the rally as prices climbed on expectations of U.S. rate cuts, supported by softer inflation data and safe-haven demand amid geopolitical tensions. Broader markets performed well given selective buying in mid- and small-cap segments. Globally, equities traded mixed as investors awaited the U.S. December PPI and major bank earnings. Looking ahead, focus will shift to Q3 FY26 earnings, where initial IT results were broadly in line with expectations, though bottom-line performance was impacted by one-off costs,” said Nair.
Global Markets
Asian markets pushed to fresh highs on Wednesday, led by a rally in Japanese shares as investors positioned for a potential election that could usher in additional fiscal stimulus. Currency markets, meanwhile, were unsettled by renewed questions around central-bank independence and a benign U.S. inflation reading.
MSCI’s broad Asia-Pacific index rose 0.5% to a record. U.S. equity futures slipped 0.19%, while European futures edged up about 0.1%, signalling a muted start for Western markets.
Chinese stocks reversed earlier gains to trade 0.15% lower after domestic exchanges unexpectedly tightened margin requirements in an effort to rein in an overheated equity market.
In commodities, precious metals surged, with gold climbing more than 1% to $4,639.42 an ounce and silver jumping nearly 5% to above $90 an ounce, both touching record highs.
Crude impact
Oil prices were little changed on Wednesday, pausing after a four-day rally as renewed Venezuelan exports and a build in U.S. crude and fuel inventories offset concerns that escalating unrest in Iran could disrupt supplies.
Brent crude slipped 11 cents, or 0.2%, to $65.36 a barrel by midmorning in London, while U.S. West Texas Intermediate fell 10 cents, or 0.2%, to $61.05 a barrel.
Rupee vs Dollar
The Indian rupee surrendered early gains to end modestly weaker on Wednesday, slipping 6 paise to 90.29 per dollar, as suspected central-bank support was outweighed by a firmer U.S. currency, foreign portfolio outflows and persistently high oil prices.
The dollar index, which measures the greenback against a basket of major currencies, was little changed at 99.184, following a 0.2% rise in the prior session.
(with inputs from agencies)