Sensex falls 760 pts as Nifty IT slides 4% on crude spike

Market opens sharply lower on Wednesday

Indian equity benchmarks opened sharply lower on Wednesday as a mix of geopolitical risk and sector-specific selling hit early sentiment. Renewed uncertainty around a potential US-Iran peace deal pushed crude prices higher, keeping risk appetite weak. Traders also remained alert to continued foreign investor concerns mentioned in market commentary. Against this backdrop, information technology stocks, which had supported the market in the previous few sessions, saw heavy profit-booking. The early tone was decisively negative, with declines close to 1% in both frontline indices. Selling pressure was most visible in IT, where a sharp reversal amplified index-level losses.

Early trade snapshot: Sensex, Nifty slip below key marks

In early trade, the S&P BSE Sensex fell 763.45 points, or 1.02%, to 73,886.39. The NSE Nifty50 declined 213.75 points, or 0.91%, to 23,269.80, slipping below the 23,300 mark. Another live update around 9:16 AM showed the Nifty50 at 23,317.60, down 166 points or 0.71%, while the Sensex was at 74,104.62, down 545 points or 0.73%. By about 9:40 am, the Sensex was reported at 73,840.72, down 809.12 points or 1.08%. The Nifty50 at the same time was at 23,265.95, down 216.90 points or 0.92%. The repeated readings across timestamps reflected a weak opening phase, with only minor intraday trims in losses.

What triggered the risk-off mood: Iran-US tensions and crude

Market commentary tied the weak open to renewed Iran-US tensions and uncertainty around a possible peace deal. The same updates noted that crude oil prices were rising, and that became a key macro overhang for domestic equities at the open. Elevated crude can weigh on sentiment because it affects inflation expectations and broader macro stability, and traders often reduce exposure to risk assets when energy prices spike. Alongside crude, the updates also flagged continued foreign investor concerns and persistent FII outflows as a pressure point. Taken together, geopolitics and energy prices set the tone for Wednesday’s open. The result was broad early selling, with the most aggressive cuts seen in rate-sensitive and globally linked pockets like IT.

IT profit-booking accelerates the fall

Information technology stocks led the decline after having supported markets in the prior sessions. The Nifty IT index dropped 3.78% in one update, marking it as the worst-performing sectoral index at that point. Another live table later showed Nifty IT at 29,674.55, down 1,442.00 points, or 4.63%. Tata Consultancy Services (TCS) emerged as the biggest loser among Sensex stocks, falling 5.73%. Tech Mahindra declined 3.31%, Infosys slipped 2.99%, and HCL Technologies lost 2.67%. Eternal was also cited among notable losers, down 2.15%. The sharp reversal in IT was a key driver of the broader index weakness because these stocks carry heavy weight in benchmark indices.

A sharp contrast to Tuesday’s IT rally

The IT-led selloff on Wednesday came soon after a strong run for the sector. Indian technology stocks extended upward momentum for a third consecutive session on Tuesday, helping the Nifty IT index register its strongest single-day advance in a year. The Nifty IT index climbed 4.2% to close at 31,116.6, marking its best daily performance since May 2025. Over the last three trading sessions, the index had gained 7.6%, significantly outperforming the broader market. Over the same three-session stretch, the Nifty 50 was reported to have declined 1.8%. On Tuesday, TCS was the biggest winner in the sector, surging 6.7%, while Infosys, HCL Technologies and LTIMindtree posted gains ranging between 4% and 6%. Wednesday’s drop therefore looked like a classic profit-booking unwind after a sharp, fast rally.

OpenAI-related disruption worries re-enter focus

Separately, market updates also referenced renewed AI-led disruption concerns after a new launch by OpenAI. According to the live updates, this re-triggered worries for IT services companies and added to selling pressure, with IT stocks such as Tech Mahindra, HCL Tech, TCS and Infosys among the top losers on the Sensex in that phase. This narrative matters because it can influence short-term sentiment even when the immediate trigger is profit-taking. The combination of profit-booking and renewed concern around competitive disruption can lead to sharper single-session moves. Importantly, the reported price action showed declines of roughly 3-4% for some large IT names in that live update stream, consistent with the broader Nifty IT weakness. While the longer-term impact is not established in the updates, the immediate reaction was clearly negative.

Recent volatility in benchmarks remains elevated

The wider market backdrop has been volatile, with sharp swings in recent sessions. One update noted that Indian equity benchmarks halted a four-day losing streak with the NSE Nifty 50 rising 0.43% to close at 23,483.55 and the BSE Sensex gaining 0.52% to end at 74,649.84. In that session, IT stocks led gains, with Infosys contributing 53.59 points and TCS adding 35.57 points to the Nifty’s rise. Yet other updates described heavy down days as well, including a session where the Sensex ended down 1,456.04 points or 1.92% at 74,559.24, and the Nifty fell 436.30 points or 1.83% to 23,379.55. Those reports also said TCS, Infosys and HCLTech hit fresh 52-week lows amid continued pressure on IT stocks. The mixed tape highlights why traders reacted quickly to fresh macro triggers on Wednesday.

Key levels in focus: the 23,300 zone on Nifty

Market watchers also highlighted the 23,300 level as a near-term pivot. One live update noted that the Nifty faced resistance near 23,300 amid F&O expiry, with the Nifty 50 trading 0.42% lower at 23,284.25 and the Sensex down 0.28% at 74,058.98 in that snapshot. Another table in the updates listed NIFTY 50 at 23,277.70, down 205.85 points or 0.88%, and SENSEX at 73,909.87, down 739.97 points or 0.99%. These levels matter because repeated failures around a round-number zone often influence intraday trading decisions and hedging activity. In Wednesday’s open, the Nifty slipping below 23,300 aligned with this resistance narrative.

Key numbers at a glance

IT stocks: winners turn to losers

Market impact: what moved and why it matters

Wednesday’s opening selloff showed how quickly sentiment can change when macro risk and sector rotation coincide. Rising crude prices and Iran-US tensions set a cautious tone across equities, while continued foreign investor concerns added to pressure. The biggest mechanical driver in the tape was the reversal in IT, given the sector’s heavy weight in benchmarks and its sharp single-session drop. The fall in TCS by 5.73% and broad declines across Infosys, HCL Tech and Tech Mahindra coincided with the Nifty IT sliding as much as 4.63% in the live table. This came right after a strong three-session run where Nifty IT had gained 7.6% even as the Nifty 50 fell 1.8%, raising the probability of profit-taking. Separately, AI-led disruption worries linked to OpenAI’s new launch were cited as another factor weighing on IT sentiment in live updates.

Conclusion

Indian equities opened Wednesday on a weak footing, with the Sensex down more than 760 points and the Nifty slipping below 23,300 in early trade. Rising crude prices tied to Iran-US tensions, continued foreign investor concerns, and a sharp IT reversal combined to drive the move. The session followed an unusually strong run in IT stocks, including a 4.2% jump in the Nifty IT index on Tuesday, making profit-booking a key part of the day’s narrative. With the 23,300 zone again in focus for the Nifty, traders are likely to track how crude prices and sector rotation evolve through the session’s remaining hours.