Sensex, Nifty fall as IT stocks slide, rising oil prices weigh

Indian equity markets experienced a decline on Wednesday, with the Sensex and Nifty both falling as information technology stocks underperformed and crude oil prices rose. The indices recovered some of their losses due to increased buying in auto and select banking stocks. Brent crude prices surged following an attack on a Saudi Arabian refinery, reaching $114.50 per barrel.

This contributed to concerns about inflation and its potential impact on India's economy and corporate earnings. FPIs sold about ₹53,000 crore this month, while domestic institutions kept absorbing it, indicating a positioning-led fall rather than an earnings decline. Reliance Industries saw its shares fall by 3.19%. IT stocks, particularly Reliance, Infosys, Tech Mahindra, and TCS, faced significant pressure amid global optimism around AI-linked stocks.

The broader market, however, outperformed the benchmarks, with the Nifty Midcap 150 index and Nifty Smallcap 250 index showing minor gains. Among sectors, the Nifty Auto index advanced 1.4%. Currency markets saw the rupee weaken by 11 paise against the US dollar, closing at 95.23. Technical analysts noted that the Nifty 50 faced immediate resistance around 22,780-22,800, while support was near 22,500-22,400.

A sustained move above resistance could push the index toward 23,000-23,100, while a breakdown below support could drag it toward 22,200.