Markets opened sharply lower on Wednesday morning, with the Nifty 50 declining by 163 points to 23,455 from its previous close of 23,618. Similarly, the Sensex fell 495 points to 74,705, down from its prior close of 75,200. This selloff was attributed to rising US Treasury yields, elevated crude oil prices, and the Indian rupee reaching new record lows.
Brent crude remained above $110 a barrel, trading at $110.76 for July futures. Despite US President Donald Trump indicating a potential end to the Iran conflict, WTI crude was quoted at $103.82. On the domestic Multi Commodity Exchange, June crude futures increased by 0.63 percent to ₹10,090. Rajesh Palviya of Axis Direct remarked that “gold remains elevated near $4,500, silver hovers around $74…while Brent crude continues to hold above $110—a situation unfavorable for inflation and currency stability.”
The 30-year US Treasury yield rose to 5.18 percent, nearing levels last recorded in 2007, following three consecutive sessions of losses on Wall Street. The S&P 500 declined by 0.67 percent, while the Nasdaq fell 0.8 percent overnight. Devarsh Vakil of HDFC Securities attributed the yield spike to “persistent inflation concerns linked to ongoing geopolitical conflicts and a shift in Federal Reserve expectations from potential rate cuts to a possible hike later in 2026.”
The Indian rupee weakened to a record low of 96.61 before slightly recovering to 96.54. Ponmudi R of Enrich Money warned that this currency depreciation poses a significant threat, leading to increased pressure on inflation, import costs, and overall economic stability due to crude prices remaining above $100 per barrel.
In early trade, only three stocks gained traction on the Nifty 50. Hindalco led the small group of gainers, increasing by 1.26 percent to ₹1,061.50. TCS added 0.50 percent to ₹2,338.70, while Infosys improved marginally by 0.02 percent to ₹1,197.10. Hariprasad K of Livelong Wealth stated that IT stocks “are likely to remain supported by persistent weakness in the Indian rupee, as a depreciating domestic currency improves earnings visibility for export-oriented businesses.”
On the downside, Tata Steel experienced the most significant decline, dropping 2.26 percent to ₹204.56. Other notable losses included Eicher Motors, which fell 1.82 percent to ₹6,757.50, Eternal slipping 1.72 percent to ₹242.97, Nestle India decreasing 1.50 percent to ₹1,409.90, and M&M down 1.46 percent to ₹3,047.
The banking sector remained under pressure, with Aakash Shah of Choice Equity Broking noting that Bank Nifty’s RSI “slipped to the 40 mark with a bearish crossover, while the MACD continued to remain below both the signal and zero lines.” Immediate support for Bank Nifty was identified at 52,800–52,200, with resistance near 54,600–55,000. Hariprasad K pointed out divergences within financial stocks, as private banks like Kotak Mahindra Bank and ICICI Bank showed “relatively stronger resilience due to healthier balance sheets,” while PSU banks continued to struggle amid elevated bond yields.
The India VIX decreased by 4.87 percent to 18.67 but remained elevated. Analysts suggested that the volatility index needs to decisively fall below 18 for broader confidence to return. The Nifty Put-Call Ratio was reported at 1.10, down from 1.24 in the prior session.
Gaurav Udani of ThinCredBlu Securities advised traders to “avoid aggressive longs at the open, and stay focused on disciplined, level-based execution,” emphasizing 23,400 as the immediate level of interest. A breach below this could result in the index moving towards 23,100, while 23,800 remains a significant resistance level. Shrikant Chouhan of Kotak Securities added that the “short-term market texture is non-directional, and range-bound activity is likely to continue in the near future.”
Investors are closely monitoring Nvidia’s first-quarter earnings, anticipated after the US market closes on Wednesday, for insights into AI chip demand and broader trends in the technology sector.
