The domestic equity benchmarks snapped their three-day winning streak with a sharp jolt on Wednesday, as relentless selling in IT heavyweights and simmering geopolitical tensions dragged sentiment into the red. The Nifty 50 gapped down decisively to open at 24,470.85, mirroring weak global cues after the U.S.-Iran failed to clinch an agreement ahead of the ceasefire deadline.

Through the session, price action turned erratic and jittery, with the index swinging sharply between a high of 24,515.95 and a low of 24,352.90. Despite brief attempts to recover, the Nifty ultimately succumbed to selling pressure, slipping below the crucial 24,400 mark by the close.

Investor mood remained fragile and watchful, even as reports of a ceasefire extension offered limited relief. With uncertainty lingering over West Asia, market participants are now locking their gaze on Q4 earnings, hoping for cues strong enough to steady the nerves.

The S&P BSE Sensex declined 756.84 points or 0.95% to 78,516.49. The Nifty 50 index slumped 198.50 points or 0.81% to 24,378.10. In the past three sessions, the Sensex and Nifty jumped 1.65% and 1.57%, respectively.

HCL Technologies (down 10.74%), Infosys (down 3.38%) and HDFC Bank (down 1.52%) were major index drags today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index added 0.29% and the BSE 250 SmallCap Index jumped 0.90%.

The market breadth was positive. On the BSE, 2,440 shares rose and 1,838 shares fell. A total of 154 shares were unchanged.

The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, climbed 4.37% to 18.30.

Economy:

The credit rating agency Moody has lowered Indias FY27 GDP growth forecast to 6% from 6.8%. The downgrade reflects weak consumption, slower industrial output, and rising energy costs due to West Asia tensions. Higher oil and gas prices may increase import bills and push up inflation. Indias dependence on Middle East energy and fertiliser imports adds to the risk. Elevated costs could hurt the margins of sectors like aviation, cement, and chemicals. The government may also face pressure on subsidies and fiscal balance. However, strong forex reserves, resilient services exports, and ongoing infrastructure spending are expected to provide some support.

Numbers to Track:

The yield on India’s 10-year benchmark federal paper rose 0.35% to 6.915 compared with the previous session close of 6.891.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.7875 compared with its close of 93.4400 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement advanced 1% to Rs 153,190.

The US Dollar Index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.07% to 98.33.

The United States 10-year bond yield shed 0.21% to 4.282.

In the commodities market, Brent crude for June 2026 settlement added 78 cents or 0.79% to $99.26 a barrel.

Global Markets:

US Dow Jones futures surged 244 points, signalling a firm and optimistic start for Wall Street later today.

European indices, however, lost ground on Wednesday, weighed down by fresh inflation worries. The U.K.s first inflation print since the Iran conflict began showed prices accelerating to 3.3% in March from 3.0%, driven largely by a spike in fuel costs, reinforcing concerns that price pressures remain sticky.

Asian indices closed on a mixed note, as traders cautiously parsed developments around the Iran ceasefire extension and the fragile prospects of renewed peace talks.

In a dramatic geopolitical twist, Donald Trump said the U.S. would hold off its attack on Iran, citing internal fractures within the Iranian government and requests from Pakistans leadership. He added that the ceasefire would be extended until Tehran presents a unified proposal, while warning that the U.S. military would continue its blockade of Iranian ports.

Uncertainty, however, continues to cloud the outlook. Iranian negotiators have reportedly rejected participation in talks, calling them a waste of time, while Vice President JD Vance has delayed his planned visit for negotiations, underscoring the fragile state of diplomacy.

In contrast, Japans Nikkei 225 scaled a fresh record high of 59,691, buoyed by strong trade data. Exports rose for a seventh consecutive month, helping the country post a trade surplus of 667 billion yen in March, although it fell short of market expectations.

Overnight on Wall Street, sentiment remained decidedly cautious. Stocks retreated sharply on Tuesday as investors fretted over the possibility that a peace deal may not materialise before the ceasefire deadline. The S&P 500 slipped 0.63% to 7,064.01, while the Nasdaq Composite dropped 0.59% to 24,259.96. The Dow Jones Industrial Average shed 293.18 points, or 0.59%, to close at 49,149.38.

Stocks in Spotlight:

The Nifty IT index slumped 3.89% to 30,496.25 after weak Q4 results and cautious guidance from HCL Technologies raised concerns over demand in the sector.

The selloff followed HCL Tech’s FY27 revenue growth guidance of 1% to 4% in constant currency, which came below market expectations. The company cited weak discretionary spending, delays in client decision-making and project ramp-downs.

HCL Technologies plunged 10.74%, emerging as the worst performer in the pack, while Coforge fell 4.24%. Infosys dropped 3.38%, Larsen and Toubro Technology Services slipped 3.11%, and Mphasis lost 3.02%. Tata Consultancy Services shed 2.88% while Wipro saw a relatively milder fall of 0.49%.

In contrast, Oracle Financial Services Software bucked the trend, rising 2.51% amid the broader weakness in the IT space.

HCL Technologies reported 6.4% fall in consolidated net income to Rs 4,488 crore as revenues rose by 0.3% to Rs 33,981 crore in Q4 FY26 as compared with Q3 FY26.

Persistent Systems declined 4.88%. The company reported a 20.43% sequential increase in consolidated net profit to Rs 529.26 crore in Q4 FY26, compared with Rs 439.45 crore in Q3 FY26. Revenue from operations increased 7.35% quarter-on-quarter to Rs 4,055.94 crore for the quarter ended 31 March 2026. Meanwhile, the companys board has recommended a final dividend of Rs 18 per equity share of face value Rs 5 for the financial year 202526.

Tech Mahindra fell 2.5%. The company reported a steady Q4 FY26 performance, supported by strong deal momentum. On a consolidated basis, profit after tax rose 16.0% YoY to Rs 1,353.8 crore in Q4 FY26, compared with Rs 1,166.7 crore in Q4 FY25. On a sequential basis, PAT increased 20.6% from Rs 1,122.0 crore in Q3 FY26. Revenue came in at Rs 15,076.1 crore, up 12.6% YoY and 4.7% QoQ, versus Rs 13,384.0 crore a year ago and Rs 14,393.2 crore in the previous quarter.

Tata Elxsi fell 6.19%. The company reported a 27.8% increase in net profit to Rs 220.35 crore in Q4 FY26, compared with Rs 172.42 crore posted in Q4 FY25. Revenue from operations increased 9.4% to Rs 993.75 crore in the quarter ended 31 March 2026, compared with Rs 908.34 crore recorded in the corresponding quarter last year.

Cyient DLM jumped 4.78% after reporting strong Q4 FY26 results, with net profit surging 99.82% quarter-on-quarter (QoQ) to Rs 22.44 crore from Rs 11.23 crore in Q3, reflecting sharp sequential improvement in profitability. Revenue from operations jumped 21.66% QoQ to Rs 369.08 crore in the quarter ended 31 March 2026.

Amara Raja Energy & Mobility jumped over 16.32% after reports highlighted its aggressive push into lithium-ion technology, with plans to begin small-scale production this year and scale up to bulk manufacturing by 2027, supported by a 2 GWh gigafactory.

Transformers & Rectifiers India declined 7.10% after the companys consolidated net profit declined 5.2% to Rs 89.28 crore despite 15.7% increase in revenue from operations to Rs 782.67 crore in Q4 FY26 over Q4 FY25.

Tata Investment Corporation rose 1.17% after the company reported 69.2% increase in consolidated net profit to Rs 63.83 crore on a 51.9% rise in total income to Rs 69.62 crore in Q4 FY26 as compared with Q4 FY25.

Larsen & Toubro slipped 1.32%. The company announced that its wholly-owned subsidiary L&T Energy GreenTech (LTEGL) has entered into a long-term partnership with Japans ITOCHU Corporation for the supply of green ammonia.

Lupin shed 0.51%. The company announced the launch of Dapagliflozin and Metformin Hydrochloride extended-release tablets in the U.S., in strengths of 5 mg/500 mg, 5 mg/1,000 mg, 10 mg/500 mg, and 10 mg/1,000 mg, following approval from the U.S. FDA.

HDFC Life Insurance Company fell 1.65%. The company said that it has approved the reappointment of Vibha Padalkar as the managing director (MD) & chief executive officer (CEO) of the company for a period of 5 (five) years with effect from 12 September 2026.

Central Mine Planning & Design Institute declined 3.40% after the company reported 32.2% drop in net profit to Rs 187.82 crore despite a 11.7% increase in net sales to Rs 826.88 crore in Q4 FY26 as compared with Q4 FY25.

360 ONE WAM slipped 4.31%, The companys consolidated net profit increased 15.68% to Rs 288.74 crore, driven by a 27.30% rise in revenue from operations to Rs 1,115.4 crore in Q4 FY26 compared with Q4 FY25.

Ajanta Pharma shed 0.18%. The company said the United States Food and Drug Administration (USFDA) has completed an inspection at its Paithan manufacturing facility in Maharashtra, conducted between 13 April and 21 April 2026.

Advait Energy Transitions jumped 2.20% after the company received an order worth Rs 27.74 crore from Power Transmission Corporation of Uttarakhand (PTCUL).