Indian benchmark equity indices opened lower on Wednesday, extending losses from the previous session as continued foreign institutional investor (FII) outflows and geopolitical tensions in West Asia weighed on investor sentiment.
The BSE Sensex fell 142.11 points, or 0.19 per cent, to open at 74,507.73, while the NSE Nifty 50 declined 67.60 points, or 0.29 per cent, to 23,415.95.
Market participants remained cautious amid uncertainty surrounding developments in West Asia and elevated crude oil prices, which continue to influence global financial markets.
Ajay Bagga, banking and market expert, said uncertainty persists over the status of negotiations between the United States and Iran, with conflicting signals emerging from both sides.
He noted that while Iranian media reports suggested talks had been interrupted, US Secretary of State Marco Rubio indicated that discussions were progressing well. US President Donald Trump has also spoken of the possibility of a truce agreement in the coming days.
Bagga said financial markets appear to be factoring in a scenario of de-escalation despite ongoing military exchanges in the region. However, he cautioned that the risk of further escalation remains and is not fully reflected in stock, bond or oil markets.
On the domestic front, he highlighted persistent foreign fund outflows as a key challenge for Indian equities. According to Bagga, FIIs have withdrawn more funds from Indian secondary markets in the first five months of 2026 than during the whole of 2025.
Sector-wise, most indices traded in negative territory. Nifty IT emerged as the worst-performing sector, declining more than 2 per cent. FMCG, PSU Bank, Media, Realty, Private Bank, Auto and Pharma stocks also witnessed losses. In contrast, Metal, Oil & Gas and Healthcare indices posted modest gains.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said key support levels for the Nifty are placed at 23,300 and 23,220, while the Sensex has support at 74,000 and 73,800.
He said that as long as the market remains above these levels, the ongoing pullback trend is likely to continue. Chouhan added that the Nifty could retest its 50-day and 20-day simple moving averages near 23,700 and 23,770, respectively.
Global market cues remained mixed. According to Bagga, US equities have continued to advance despite narrow market participation, driven largely by momentum in artificial intelligence-related stocks.
Among Asian markets, Japan’s Nikkei and Taiwan’s benchmark index recorded gains, while Hong Kong’s Hang Seng and GIFT Nifty traded lower.
Meanwhile, Brent crude oil was trading near 96.85 dollars per barrel, up 0.89 per cent, reflecting continued concerns over energy supplies amid geopolitical tensions.
-ANI
