Indian markets shrugged off early gains to close in the red on Wednesday, as rising tensions between Israel and Iran weighed on investor sentiment.
The S&P BSE Sensex slipped 138.64 points to settle at 81,444.66, while the NSE Nifty50 fell 41.35 points to close at 24,812.05.
According to Vinod Nair, Head of Research at Geojit Financial Services, the domestic market was unable to hold on to early gains due to ongoing geopolitical tensions and volatility in crude oil prices. However, auto and consumer discretionary stocks outperformed on hopes of a recovery in demand.
Nair noted that while short-term uncertainties persist, India’s strong macroeconomic fundamentals continue to support a positive long-term outlook. Until global clarity improves, investors are expected to focus on quality large-cap names.
Meanwhile, markets are also awaiting the outcome of the US Federal Reserve’s policy meeting. With inflationary risks resurfacing due to potential tariff-related pressures, the Fed is widely expected to hold rates steady.
Concerns over rising crude oil prices and geopolitical tensions in the Middle East are the biggest triggers. Gains in IndusInd Bank, HCL Tech, Sun Pharma, and M&M helped offset losses in Kotak Bank, Power Grid, Infosys, and HDFC Bank.
Broader indices also recovered, with Nifty holding above key support levels as investor focus shifted to stock-specific action.
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