Sensex Drops 494 Points, Nifty Slips Below 24,500 As US-Iran Ceasefire Extension Fails To Cheer Markets

Mumbai: The Indian equity benchmarks traded lower in early hours on Wednesday, even after President Donald Trump announced an extension of the fragile ceasefire between the US and Iran. Sensex declined as much as 0.62 per cent, or about 500 points, to 78,779, while Nifty traded at 24,434, down 142.2 points or 0.57 per cent, amid selling pressure in IT, banking, pharma and healthcare stocks such as Max Healthcare, ICICI Bank, Axis Bank, HCL Tech and Apollo Hospitals.

Meanwhile, Nifty FMCG and Nifty Metal were the top gainers. Moreover, the volatility-tracking index, India VIX, spiked by about 3 per cent. Analysts said the market setup for the day suggests a gap-down to range-bound opening. They further noted that while the broader trend remains positive, profit booking at higher levels and continued FII selling may cap upside in the near term.

"Strong DII buying is expected to continue supporting the market on declines, but short-term consolidation cannot be ruled out," analysts said. On Tuesday, FIIs were net sellers with outflows of Rs 1,919 crore, while DIIs were net buyers with inflows of Rs 2,221 crore, according to provisional data. Trump has indefinitely extended the ongoing ceasefire between the US and Iran.

However, the naval blockade continues, and the Strait of Hormuz continues to remain congested. In commodities markets, crude oil rebounded by up to 1 per cent, with Brent crude trading around the $100 per barrel mark, and US WTI at $90.71. On the global front, markets traded on a mixed note.

In Asian markets, the Nikkei was up 0.61 per cent, while the Hang Seng was down 1 per cent and the KOSPI traded marginally lower. In the US, Wall Street closed in the negative territory, with the S&P 500 down 0.63 per cent at 7,064 and the Nasdaq finishing at 24,259.96, down 0.6 per cent.

Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.