Indian equity markets ended Tuesday sharply lower after a brief early rally reversed into broad-based selling, reigniting investor caution. The BSE Sensex slumped nearly 933 points from its intraday high, while the Nifty 50 declined over 1%, collectively erasing around ₹2.6 lakh crore in market capitalisation as selling pressure intensified through the session.
Heavyweights such as Reliance Industries dragged the indices, with the stock falling 2% amid lingering concerns over crude supply uncertainty after the company indicated it does not expect Russian oil deliveries. Financials and select large-cap stocks also remained under pressure, reflecting risk-off sentiment.
Key Market Triggers
Global cues turned mixed as Wall Street closed lower, led by financial stocks, following concerns over a proposed cap on U.S. credit-card interest rates.
Asian markets opened modestly higher on Wednesday, supported by a weaker yen, though gains remained cautious.
Crude oil prices paused after four consecutive sessions of gains as Venezuela resumed shipments, even as geopolitical tensions in Iran continued to pose supply risks.
The U.S. dollar rebounded toward a one-month high after CPI data came in largely in line with expectations, reinforcing bets that the Federal Reserve will hold rates steady.
Domestic Developments to Watch
RBI policy outlook: Economists expect the Reserve Bank of India to keep interest rates unchanged in its February meeting, with policymakers likely to wait for clarity from the revised inflation and growth data under the new base-year series.
Q3 earnings season: As many as 25 companies are scheduled to announce results on Wednesday, including Infosys, Groww, HDB Financial Services, HDFC AMC, ICICI Prudential AMC, and Waaree Renewable Technologies.
Stocks in focus: Infosys, Groww, HDFC AMC, ICICI Lombard, and Waaree Renewable are expected to remain active on the back of earnings and corporate updates.
IPO watch: Amagi Media Labs plans to raise ₹816 crore via a fresh issue to fund cloud infrastructure and inorganic growth, along with an offer for sale of up to ₹973 crore, reducing promoter stake post-IPO. The issue is being closely tracked by high-risk, long-term investors.
Market Outlook
Early indicators remain cautious, with GIFT Nifty signaling a mildly negative start. Near-term market direction will hinge on earnings outcomes, RBI policy clarity, crude oil movements, and global central bank signals amid persistent geopolitical and macroeconomic uncertainties.
