Sensex Declines 300 Points, Nifty Ends 0.3% Lower As West Asia Tensions Rise, MPC Starts Discussions On Policy Rates

The green-run of the equity indices was short lived as benchmarks turned red on Wednesday.

Sensex closed 0.41 percent, or 303 points, down at 74,346 points from the previous close of 74,649 points on Tuesday.

The 50-share Nifty also declined over 0.3 percent, or 78 points, to 23,405 points compared to the previous close of 23,483 points.

Selling by foreign portfolio investors and heightened tensions in the Gulf region dented the market sentiment.

Of the 3,402 stocks that traded on the National Stock Exchange on Wednesday, only 1,379 closed in green while 1,915 faced losses.

Information technology stocks, which supported the market during the last two trading sessions, were the biggest losers on Wednesday.

Tata Consultancy Services, the largest software company of the country, ended 8.25 percent lower to become the biggest loser among the Nifty 50 stocks.

It was followed by Tech Mahindra which declined 6.45 percent. Among the losers, the top five stocks were of IT companies. HCLTech declined 5.3 percent while Infosys pared almost 4 percent of its value.

However, Apollo Hospitals, Tata Motors and IndiGo remained among the gainers on Wednesday.

Among the sectoral indices, Nifty IT led the losers chart by declining 5.5 percent, followed by Nifty Midsmall IT & Telecom.

Nifty Realty declined 1.4 percent.

Investor sentiment remained subdued throughout the trading session as clarity remained elusive of the war front.

As hostilities increased among the United States and Iran, crude oil also climbed over $98 per barrel mark, further weakening the sentiment.

Investors were also cautioned ahead of the Reserve Bank of India’s policy decision on June 5.

According to experts, the central bank is expected to maintain status quo this time with a hawkish tone on inflation.