Sensex down 200 pts, Nifty below 24,800 as IT, oil & gas, metal stocks fall

"The markets are falling amid rising risk of an escalation of conflicts in the Middle East and ahead of the FOMC meeting. This uncertainty pushed Brent crude prices higher—an unfavourable development for India, given its heavy reliance on oil imports, thereby dampening earnings growth," Vinod Nair of Geojit Investments Limited said.

"In the absence of any major domestic events, global cues—such as updates on ongoing geopolitical tensions and the outcome of the FOMC meeting—will guide the market trend and are likely to keep volatility elevated," Ajit Mishra, Senior Vice President of Religare Broking, said.

Also read: Defence rally riding on structural tailwinds, not just conflict sentiment, say analysts

NSE sectoral indices were largely in the red on Wednesday, with broad-based weakness across key segments. Nifty Auto bucked the trend, rising 0.57 percent, albeit considerably off highs. On the downside, Nifty IT and Metal led the losers, both falling 0.73 percent. Nifty Energy, FMCG, Infra, and Oil & Gas also saw moderate declines. The broader markets mirrored the weak sentiment, with the Nifty Midcap 100 down 0.53 percent and the Smallcap 100 slipping 0.20 percent. Meanwhile, India VIX eased 0.49 percent to 14.33, suggesting slightly lower volatility.

As for individual names, private lender IndusInd Bank rose nearly 4 percent after global brokerage firm Nomura upgraded its rating on the stock to “buy.” It also raised the target price to Rs 1,050 from Rs 700, indicating a potential upside of 25 percent from current levels. According to Nomura analysts, most of the bank’s legacy problems have now been addressed. They expect return on assets (RoA) to reach 1 percent by FY27.

Maruti Suzuki gained 2 percent on reports that the Indian government is considering Australia as a potential alternative for sourcing rare-earth magnets, as India looks to diversify its supply chain. The development holds added significance for Maruti Suzuki, as India’s largest automaker prepares to launch its first electric vehicle, the E-Vitara.

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Shares of Hindustan Zinc shed 6 percent after Vedanta offloaded a 1.71 percent or 7.2 crore shares of the company through block deals on Wednesday, with the transaction size to be around Rs 3,323 crore. The floor price for the deal has been fixed at Rs 460.5 per share — over 5 percent lower than Hindustan Zinc’s last close of Rs 485.95 on the NSE. As of December 31, 2024, Vedanta held a 63.42 percent stake in the company, as per BSE data.

"Technically, the formation of a reversal pattern on intraday charts and a bearish candle on the daily chart suggests short-term weakness in the market. As long as the Nifty and Sensex remain below 24,900 (Nifty) and 81,800 (Sensex), respectively, the bearish sentiment is likely to persist," Shrikant Chouhan of Kotak Securities said. "On the downside, immediate support is seen at 24,775 for Nifty and 81,200 for Sensex. A breach of these levels could drag the indices further down to 24,675–24,625 and 80,900–80,700. Conversely, a move above 24,900/81,800 may shift the sentiment positively, potentially triggering a rally towards 25,000–25,100 for Nifty and 82,100–82,500 for Sensex," he added.

IndusInd Bank, Trent, Eicher Motors, Maruti, and M&M were the top gainers on the Nifty. Laggards on the index included HUL, Adani Ports, Nestle, TCS, and Apollo Hospital.

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