The Nifty touched 23,425 before sliding to a flat close as renewed U.S.-Iran hostilities and heavy foreign selling erased nearly all of a 694-point Sensex intraday gain.
The Nifty touched 23,425 in early trade Wednesday before sliding to a flat close, as renewed U.S.-Iran hostilities and heavy foreign selling erased nearly all of a 694-point Sensex intraday gain.
The 30-share BSE Sensex settled 64 points higher at 73,983, having been up 694 points at the session high. The Nifty finished down 27 points at 23,214, after hitting 23,425. The 240-point range – from 23,425 to 23,184 – shows a market that cannot hold strength.
Foreign institutional investors sold ₹4,566 crore of Indian equities Tuesday, exchange data showed. That selling has been a persistent drag: every bounce draws sellers. Wednesday's early rally, driven by short-covering and selective buying in Hindustan Unilever, Axis Bank, and ICICI Bank, faded once afternoon headlines from West Asia crossed terminals.
Brent crude edged down 0.2% to $91.27 a barrel, a modest move that suggests the oil market is not yet pricing a full-blown escalation. The equity reaction was sharper.
Ponmudi R., CEO of Enrich Money, said the session showed "geopolitical uncertainty continued to limit risk appetite and cap any meaningful recovery." The Nifty traded positively through the first half before surrendering gains, he noted.
Asian markets were worse. South Korea's Kospi fell 4.5%. Japan's Nikkei lost 1.9%. European indices were also in the red. The U.S. session Tuesday had ended mostly lower, setting a weak global tone before India opened.
Among Sensex stocks, Hindustan Unilever, Axis Bank, Kotak Mahindra Bank, ICICI Bank, ITC and HDFC Bank were the winners. Eterna Ltd., Tata Steel, Bajaj Finserv and Titan lagged.
The question for Thursday is whether the FII selling accelerates or pauses. Wednesday's data covered Tuesday's flows; the market will get Wednesday's numbers Thursday evening. If the selling continues at the same pace, the Nifty's 23,000 round number becomes a live test. If it slows, the intraday range suggests buyers are willing to step in near 23,180.
For now, the market is trading headline to headline on West Asia. The Nifty's inability to hold 23,400 – a level it touched twice this week – is the most concrete signal that the risk premium has not fully receded.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.