Sensex, Nifty extend losses for third day; investors lose Rs 4.24 lakh crore as market sentiment weakens

Indian equity benchmarks extended their losing streak for the third consecutive session on Wednesday amid weak global cues, with banking, IT and financial stocks dragging the indices lower.

The 30-share BSE Sensex pack declined 715.06 points or 0.92 per cent to settle at 76,755.05. The broader NSE Nifty50 index dropped 191.45 points or 0.79 per cent to close at 23,996.25.

Among the biggest contributors to the Sensex's decline were ICICI Bank Ltd, HDFC Bank Ltd, Reliance Industries Ltd (RIL), State Bank of India (SBI), Infosys Ltd, Axis Bank Ltd, InterGlobe Aviation Ltd (IndiGo's parent), Larsen & Toubro Ltd (L&T) and Kotak Mahindra Bank Ltd.

Realty, media and IT emerged as the worst-performing pockets, followed by banks, financials and pharma. In contrast, select FMCG and auto stocks outperformed after a few companies reported encouraging quarterly earnings.

The broader market also remained under pressure, reflecting cautious investor sentiment. Nifty Midcap100 fell 1.09 per cent, while Nifty Smallcap100 declined 1.54 per cent.

The market downturn wiped out around Rs 4.24 lakh crore in investor wealth. The combined market capitalisation (m-cap) of BSE-listed companies declined to Rs 480.05 lakh crore from Rs 484.29 lakh crore in the previous session.

Ajit Mishra, SVP (Research) at Religare Broking, said investor sentiment remained subdued due to persistent geopolitical tensions in the West Asia, which pushed Brent crude prices above $95 per barrel and rekindled inflation concerns.

"Adding to the pressure, the proposed phased US tariffs on imported generic medicines weighed on pharma stocks, while weakness in the rupee further dampened sentiment. However, encouraging quarterly earnings from select auto companies helped cushion the overall market decline," Mishra added.

Ankur Punj, MD & Business Head at Equirus Wealth, also noted that rising crude oil prices and the Indian rupee's weakness kept investors on edge.

"As crude oil prices showed a renewed upward bias, worries about higher inflation and widening deficits kept sentiment bearish throughout the session. A sharp decline in the currency against the dollar also weighed heavily on the sentiment," Punj stated.

Nifty outlook

Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, said, "From a technical perspective, a decisive breach below the crucial 24,000 level could extend the decline toward 23,850-23,800 in the intermediate term, with stronger support at 23,645. On the flip side, 24,150-24,200 is likely to act as an immediate resistance zone, followed by 24,300-24,350."

Krishan added, "Going forward, market sentiment has turned increasingly cautious amid heightened volatility and persistent global uncertainties. Investors are advised to adopt a disciplined risk management approach, avoid aggressive positioning, and await greater stability before initiating fresh directional bets in the market."