Sensex Falls 188 Points, Nifty Below 24,400 As Tata Sell-Off Weighs On IT Stocks

Indian benchmark indices ended lower on Wednesday, with the Nifty 50 settling below the 24,400 mark as selling pressure across most sectors offset gains in metals, media and PSU banks.

The Nifty 50 declined 35.75 points, or 0.15%, to close at 24,435, while the Sensex fell 187.90 points, or 0.24%, to end at 77,966.35.

IT stocks remained under pressure, with the Nifty IT index falling 2%. TCS emerged as the biggest drag after Tata Sons Executive Chairman N Chandrasekaran announced his decision to step down and not seek reappointment after his current term ends. Shares of TCS fell nearly 6%, while Tata Consumer Products, Titan, Tata Steel, Indian Hotels, Tata Technologies and Tata Investment Corporation also ended lower.

Broader markets were relatively resilient, with the Nifty Midcap and Smallcap indices ending with marginal losses.

Among sectoral indices, only Metal, Media and PSU Bank closed in the green, while all other sectors ended lower

Vinod Nair, Head of Research, Geojit Investments, said, "Markets remained on edge ahead of key inflation readings in India and the U.S., with policymakers on both sides underscoring a data-driven approach amid heightened global uncertainty. Against this backdrop, elevated crude oil prices, which retested the $90/barrel level, weighed on investor confidence and triggered broad-based risk-off selling despite supportive cues from Asian peers.

"Defying the broader weakness, PSU banks extended gains on the back of robust asset quality, attractive valuations and healthy credit growth outlooks, while metal stocks outperformed on expectations of tighter supply conditions. Meanwhile, Tata Group stocks came under pressure following the Chairman's exit, contributing to the underperformance of large-cap stocks relative to the broader market."

Rupee Holds In Narrow Range Ahead Of US CPI

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the rupee traded in a narrow range as crude oil prices and upcoming US inflation data kept currency markets cautious.

"Rupee traded in a narrow range near 95.32, as early gains in crude oil prices kept the currency under pressure. However, around 2% profit booking in crude below the $90 per barrel mark provided some support to the rupee and limited the downside. The market remains cautious ahead of the US CPI data, which could influence the Dollar Index and emerging-market currencies. Technically, the rupee is expected to trade in the 95.10–95.55 range in the near term."