Indian equity benchmarks ended lower on Wednesday, breaking a three-day winning streak due to weakness in IT stocks and global uncertainty. Concerns over prolonged geopolitical tensions in West Asia, following stalled talks between the United States and Iran, contributed to the decline. The Nifty closed 0.81% lower at 24,378.10, while the Sensex dropped 0.95% to settle at 78,516.49.
Experts noted that the 24,500–24,600 range acts as a strong resistance band from a technical perspective. They highlighted the 24,350–24,300 zone as a critical near-term support area, stating that breaching this range could lead to downside momentum towards the 24,100–24,000 levels. Despite the fall in frontline indices, broader markets displayed resilience, with the Nifty MidCap index edging up 0.19% and the Nifty SmallCap index gaining 1.13%.
IT stocks were the major drag on the market, making the Nifty IT the worst-performing index of the day. Financial services and auto stocks also faced pressure, contributing to the overall weakness in benchmarks. Global cues remained negative as geopolitical tensions resurfaced, with the United States extending its ceasefire with Iran. However, uncertainty persisted after talks between the two sides failed to progress, with US President Donald Trump describing the Iranian government as “seriously fractured” while announcing the extension on Truth Social.
Amid concerns, Trump mentioned the continuation of the blockade at the Strait of Hormuz, raising fears of potential disruptions in global oil supply. The situation escalated further as reports indicated that a planned meeting between US Vice President JD Vance and Iranian officials did not occur, with Tehran reportedly declining further discussions. Analysts attributed the cautious mood in domestic markets to a combination of weak global sentiment and sector-specific pressures, despite broader indices managing to stay in positive territory.
