Indian markets open lower as IT stocks slide, global worries weigh on sentiment

Indian equity benchmarks opened on a weaker note on Wednesday, pressured by global uncertainty, a sharp decline in technology stocks and profit booking after recent gains.

The BSE Sensex fell 381 points, or 0.48 per cent, to 78,893 in early trade, while the Nifty 50 slipped 101 points to 24,475 at around 9:20 am. Despite the decline in headline indices, broader market sentiment remained constructive, with advancing shares outnumbering declines.

However, volatility ticked higher, with the India VIX rising more than 3 per cent to 18.13, signalling increased investor caution amid ongoing geopolitical tensions.

Global cues dampen sentiment

Asian markets traded lower, tracking overnight losses on US stock market indices, as concerns surrounding the Middle East conflict overshadowed optimism from corporate earnings. The cautious global backdrop weighed on domestic investor sentiment at the opening bell.

IT sector leads losses

Technology stocks bore the brunt of the sell-off, dragging the Nifty IT index down by nearly 3 per cent. Shares of HCL Technologies plunged more than 8 per cent following weak management commentary on earnings outlook.

The decline spread across the sector, with heavyweights such as Infosys, Tata Consultancy Services and Tech Mahindra also trading lower.

Oil prices remain elevated

Crude oil prices eased slightly but continued to hover near the $98 per barrel mark, reflecting persistent concerns over supply disruptions linked to tensions around the Strait of Hormuz and broader US-Iran developments. Elevated energy prices added to market nervousness.

Profit booking after recent gains

The downturn also reflected profit booking after a three-session rally that had lifted benchmark indices sharply. The Nifty had gained more than 200 points in the previous session, prompting investors to lock in gains at higher levels.

Early signals from GIFT Nifty had already pointed to a weak start, indicating cautious sentiment among traders.

Mixed sectoral trends

While IT and some financial stocks remained under pressure, defensive sectors such as FMCG saw selective buying interest. Shares of Nestlé India and Hindustan Unilever were among the notable gainers in early trade.

Technical outlook

Analysts said the Nifty faces immediate resistance in the 24,550–24,600 range, while support is seen between 24,400 and 24,300. A breach below these levels could open the door to further downside towards 24,150.

Market participants are expected to remain cautious in the near term, with the ongoing earnings season and global developments likely to drive stock-specific movements.

With PTI inputs