Sensex tumbles 757 pts; Nifty below 24,400 (2026)

Benchmarks end lower after three-day rise

Indian equity benchmarks snapped a three-session winning streak on Wednesday as heavy selling in information technology stocks and geopolitical uncertainty weighed on sentiment. The Nifty 50 opened sharply lower at 24,470.85, tracking weak global cues after the U.S. and Iran failed to reach an agreement ahead of a ceasefire deadline. Trading remained choppy through the session, with fast swings reflecting risk aversion and sector-level pressure. By the close, the Nifty slipped under the 24,400 mark, a level many traders watch closely in the near term.

The S&P BSE Sensex fell 756.84 points, or 0.95%, to 78,516.49. The Nifty 50 declined 198.50 points, or 0.81%, to 24,378.10. The decline reversed part of the prior three-session rise, during which the Sensex and Nifty had gained 1.65% and 1.57%, respectively.

How the day unfolded on Dalal Street

The Nifty 50’s intraday movement underlined the nervous tone. It traded between a high of 24,515.95 and a low of 24,352.90, with recovery attempts fading amid renewed selling. Market participants remained focused on West Asia headlines, where reports of a ceasefire extension offered only limited relief.

Risk appetite also softened as investors awaited clearer signals from the ongoing Q4 earnings season. With uncertainty still elevated, traders appeared to reduce exposure to sectors sensitive to global demand and discretionary spending, especially IT services.

Key index and market snapshot

HCL Technologies (down 10.74%), Infosys (down 3.38%) and HDFC Bank (down 1.52%) were cited as major drags on the day.

IT selloff deepens after HCLTech guidance

IT stocks led the decline, pulling the Nifty IT index down 3.89% to 30,496.25. The drop followed weak Q4 results and cautious commentary from HCL Technologies, which raised fresh concerns about demand conditions.

HCL Tech guided for FY27 revenue growth of 1% to 4% in constant currency, below market expectations. The company cited weak discretionary spending, delays in client decision-making and project ramp-downs. HCL Technologies fell 10.74% to become the worst performer among key IT names, while Coforge dropped 4.24% and Infosys fell 3.38%. Other IT counters also weakened: L&T Technology Services slipped 3.11%, Mphasis lost 3.02%, Tata Consultancy Services declined 2.88% and Wipro fell 0.49%.

Earnings-linked moves across tech names

HCL Technologies reported a 6.4% fall in consolidated net income to ₹4,488 crore, while revenue rose 0.3% to ₹33,981 crore in Q4 FY26 compared with Q3 FY26.

Persistent Systems declined 4.88% despite reporting sequential growth. Consolidated net profit rose 20.43% quarter-on-quarter to ₹529.26 crore in Q4 FY26, while revenue from operations increased 7.35% quarter-on-quarter to ₹4,055.94 crore. The board recommended a final dividend of ₹18 per equity share (face value ₹5) for FY2025-26.

Tech Mahindra fell 2.5% after reporting that profit after tax increased 16.0% year-on-year to ₹1,353.8 crore in Q4 FY26 and 20.6% sequentially from ₹1,122.0 crore in Q3 FY26. Revenue was reported at ₹15,076.1 crore, up 12.6% year-on-year and 4.7% quarter-on-quarter.

Tata Elxsi dropped 6.19% even as it posted a 27.8% increase in net profit to ₹220.35 crore in Q4 FY26, with revenue from operations up 9.4% to ₹993.75 crore.

Broader market resilience and stock-specific action

While frontline indices fell, broader segments outperformed. The BSE 150 MidCap Index rose 0.29% and the BSE 250 SmallCap Index gained 0.90%, supported by positive breadth on the BSE.

Cyient DLM jumped 4.78% after reporting net profit up 99.82% quarter-on-quarter to ₹22.44 crore and revenue from operations up 21.66% quarter-on-quarter to ₹369.08 crore.

Amara Raja Energy & Mobility surged 16.32% after reports pointed to its lithium-ion push, including plans for small-scale production this year and scaling to bulk manufacturing by 2027, supported by a 2 GWh gigafactory. Advait Energy Transitions gained 2.20% after receiving an order worth ₹27.74 crore from Power Transmission Corporation of Uttarakhand.

Macro and cross-asset indicators: rates, rupee, commodities

Moody’s lowered India’s FY27 GDP growth forecast to 6% from 6.8%, citing weak consumption, slower industrial output and rising energy costs amid West Asia tensions. The agency flagged that higher oil and gas prices could increase import bills and add to inflation pressures. It also highlighted risks to margins in sectors such as aviation, cement and chemicals, and potential pressure on subsidies and the fiscal balance. It noted that strong forex reserves, resilient services exports and infrastructure spending could provide support.

On the day’s market indicators, India’s 10-year benchmark federal paper yield rose 0.35% to 6.915% from 6.891% in the previous session. In FX, the rupee hovered at 93.7875 versus 93.4400 previously. MCX Gold futures for 5 June 2026 settlement rose 1% to ₹153,190.

Brent crude for June 2026 settlement increased 78 cents, or 0.79%, to $19.26 a barrel. The US Dollar Index was down 0.07% at 98.33, while the US 10-year bond yield fell 0.21% to 4.282.

Global cues: geopolitics, Europe inflation, mixed Asia

Global cues remained mixed. US Dow Jones futures gained 244 points, indicating a firmer start for Wall Street later in the day. European indices slipped amid renewed inflation concerns, with the UK’s inflation reading accelerating to 3.3% in March from 3.0%, attributed largely to higher fuel costs.

Developments around Iran continued to shape risk sentiment. Donald Trump said the US would hold off an attack on Iran and extend the ceasefire until Tehran presents a unified proposal, while warning that a US blockade of Iranian ports would continue. Reports said Iranian negotiators rejected participation in talks and Vice President JD Vance delayed a planned visit for negotiations.

In Asia, Japan’s Nikkei 225 hit a record high of 59,691, supported by trade data showing exports rising for a seventh straight month and a trade surplus of 667 billion yen in March, though it missed market expectations.

Why this move matters for investors

The session highlighted how quickly index direction can shift when heavyweight IT names sell off sharply and global risk premiums rise. With India VIX up to 18.30, investors appeared to price in higher near-term volatility, especially as earnings updates meet elevated expectations.

At the same time, broader indices staying positive suggested selective risk-taking continued beneath the surface, with stock-specific earnings and theme-driven names seeing interest even as the benchmarks fell.

Conclusion: focus turns to Q4 earnings and headline risks

Benchmarks closed lower as IT weakness and West Asia uncertainty weighed on risk appetite, pushing the Nifty below 24,400 and lifting volatility. With more Q4 results due, investors are likely to track management commentary on demand trends, margins and guidance, alongside developments in crude oil prices, the rupee and geopolitical headlines.