The Indian equity benchmarks saw a decline in early trading on Wednesday despite President Donald Trump extending the ceasefire between the US and Iran. Sensex dropped by 0.62%, around 500 points, to 78,779, while Nifty stood at 24,434, down 0.57%, with selling pressure affecting IT, banking, pharma, and healthcare stocks like Max Healthcare, ICICI Bank, Axis Bank, HCL Tech, and Apollo Hospitals. Nifty FMCG and Nifty Metal were the top gainers amidst this scenario.
Additionally, India VIX, the volatility-tracking index, rose by approximately 3%. Analysts predict a gap-down to range-bound opening for the market today. They mentioned that although the broader trend remains positive, profit booking at higher levels and continuous FII selling might limit the upside in the short term.
Market experts anticipate strong DII buying to continue supporting the market during declines. However, they caution that short-term consolidation cannot be ruled out. On Tuesday, FIIs recorded net outflows of Rs 1,919 crore, while DIIs saw net inflows of Rs 2,221 crore, as per provisional data.
President Trump has extended the ceasefire between the US and Iran indefinitely. Nevertheless, the naval blockade persists, and the Strait of Hormuz remains congested. In the commodities market, crude oil prices rebounded by up to 1%, with Brent crude hovering around $100 per barrel and US WTI at $90.71.
Globally, markets displayed mixed trends. In Asian markets, the Nikkei rose by 0.61%, while the Hang Seng fell by 1% and the KOSPI traded slightly lower. In the US, Wall Street closed negatively, with the S&P 500 down by 0.63% at 7,064 and the Nasdaq finishing at 24,259.96, down by 0.6%.
