Sensex falls 600 points, Nifty drops 160 amid Iran uncertainty
IT stocks drag markets while crude holds near $98 levels
Rupee weakens, volatility rises despite strong recent market rally
Indian equity benchmark indices opened lower on Wednesday, as investors turned cautious amid uncertainty around the US-Iran situation despite an extension of the ceasefire.
At around 9:45 am, the Sensex was down 600 points or 0.75% at 78,677.59, while the Nifty 50 declined 160 points or 0.66% to 24,414.80. GIFT Nifty also indicated a weak start, trading at 24,451, below the previous close of 24,576.6.
1 April 2026
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IT Stocks Drag, Broader Markets Mixed
The decline was led by weakness in IT stocks, with HCL Technologies, Tech Mahindra, Infosys, TCS and Wipro among the major laggards. On the other hand, Trent, Nestle India, Hindustan Unilever, Adani Enterprises and Jio Financial were among the key gainers.
In the broader market, trends remained mixed. The Nifty Midcap 100 index traded in the red, while the Smallcap 100 index managed to hold gains of around 0.42%. The Nifty Bank index was also under pressure, slipping 0.33%.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets continue to reflect high uncertainty despite recent gains. He noted that the Nifty has risen nearly 10% this month, while broader markets have outperformed with around 15% gains, highlighting strong underlying momentum.
He added that recent rallies were partly driven by technical factors such as short covering, even as institutional activity remained subdued. However, uncertainty persists as geopolitical developments remain fluid.
Oil Soars, Geopolitical Risks Remain Key
Crude oil prices remained elevated, with Brent trading around $98 per barrel, nearly 35% higher than late-February levels. Prices have stayed firm even after a marginal decline, as the US continues its naval blockade of Iranian ports.
US President Donald Trump said the ceasefire with Iran would be extended, but the lack of clarity around negotiations and Iran's response has kept markets on edge.
Higher oil prices remain a concern for India's inflation and growth outlook, given the country’s dependence on imports.
Meanwhile, gold prices firmed, with spot gold rising 0.9% to $4,755.11 per ounce, reflecting safe-haven demand amid uncertainty.
Global Markets Mixed, Rupee Weakens
Asian markets traded mixed on Wednesday, taking cues from gains on Wall Street. Japan's Nikkei rose 0.5%, while South Korea's Kospi and Hong Kong's Hang Seng declined. China's Shanghai Composite posted marginal gains.
US markets had ended higher in the previous session, with the S&P 500, Dow Jones and Nasdaq gaining on optimism around possible diplomatic progress between the US and Iran.
In the currency market, the Indian rupee weakened by 20 paise to open at ₹93.70 per dollar, pressured by a stronger dollar and geopolitical concerns.
Vijayakumar cautioned that uncertainty will likely persist in the near term. He noted that while sectors like financials, power and capital market-linked stocks are showing strength, IT stocks may remain under pressure following weak earnings commentary.
The weak opening reflects growing caution after a sharp recent rally, with geopolitical uncertainty and elevated oil prices weighing on sentiment.
