By Our Business Correspondent
Indian equity benchmarks extended their decline for a third consecutive trading session on Wednesday, with the Nifty settling below the 22,650 mark as selling pressure in healthcare, metal and FMCG stocks offset gains in banking and realty shares. Elevated crude oil prices, continued foreign institutional investor (FII) selling and uncertainty over global interest rates kept investors cautious.
The BSE Sensex declined 48.78 points, or 0.07 per cent, to close at 72,480.29, while the Nifty 50 fell 95.75 points, or 0.42 per cent, to 22,620.45. Over the three-session losing streak, the Sensex has declined 1.92 per cent and the Nifty 2.25 per cent.
The market’s weakness came despite some buying in banking and realty stocks. Private-sector lenders were among the areas that provided support to the benchmarks and helped contain the broader decline. Healthcare and metal stocks, however, remained under pressure, with the Nifty Pharma index falling 1.84 per cent.
Crude, foreign selling remain key concerns
Investors continued to monitor developments in the global energy market, particularly crude oil prices, as geopolitical tensions kept the outlook uncertain. Brent crude for November 2026 delivery rose $1.24, or 1.21 per cent, to $103.83 a barrel in the domestic market data. More broadly, Brent remained above the $100-a-barrel level amid continuing uncertainty surrounding Middle East supply and shipping routes.
Foreign fund outflows have also remained a major source of pressure on Indian equities. Reuters reported that foreign investors withdrew about $2.7 billion from Indian equities during September, taking their total equity outflows for the year to about $26.8 billion. Higher US interest rates, geopolitical tensions and elevated oil prices have contributed to the cautious stance among overseas investors.
The global bond market has added another layer of uncertainty. The US 10-year Treasury yield had climbed above 5.2 per cent, while the 30-year yield moved to levels not seen in more than two decades. Higher US yields can affect capital flows towards emerging markets by making dollar-denominated assets relatively more attractive.
On Wednesday, the US 10-year Treasury yield eased 0.61 per cent to 5.228 per cent, while the US Dollar Index slipped 0.19 per cent to 101.20.
Healthcare stocks bear the brunt
Healthcare shares were among the major drags on the domestic market. The Nifty Pharma index fell 1.84 per cent, with Glenmark Pharmaceuticals, Wockhardt, Zydus Lifesciences, Gland Pharma and Sun Pharmaceutical Industries among the prominent losers.
At the broader index level, Eternal fell 2.39 per cent, Infosys 2.10 per cent and HDFC Bank 1.94 per cent, making them some of the major drags on the Nifty.
The selling was not uniform across the market, however. Realty and private banking stocks attracted buying interest, providing some cushion to the headline indices.
The BSE 150 MidCap index slipped 0.17 per cent, while the BSE 250 SmallCap index ended unchanged, indicating relatively better resilience in the broader market.
Market breadth was mixed to positive in the supplied exchange data, although the number of declining shares remained high. The NSE’s India VIX, a measure of expected near-term volatility, rose 0.61 per cent to 13.50.
Rupee, bonds and gold
In the currency market, the rupee edged higher against the US dollar. The partially convertible rupee was quoted around 95.8250 per dollar, compared with the previous close of 95.9475.
The movement in the currency continues to be closely linked to oil prices, foreign capital flows and the dollar’s strength. Reuters noted that the rupee remained among Asia’s weaker-performing currencies during the quarter, with high crude prices and elevated global bond yields adding pressure.
India’s 10-year benchmark government bond yield eased marginally to 7.156 per cent, from 7.159 per cent in the previous session.
Gold continued to attract buying interest amid geopolitical and financial-market uncertainty. MCX Gold futures for the October 5, 2026 settlement rose 0.83 per cent to Rs 1,47,448.
Global markets remain sensitive to inflation
Global investors are also focused on incoming inflation and labour-market data from the United States, which could influence expectations for the Federal Reserve’s interest-rate path.
US equities ended modestly lower on Tuesday. The Dow Jones Industrial Average fell 131.59 points, or 0.26 per cent, to 51,349.92, while the S&P 500 declined 12.85 points, or 0.17 per cent, to 7,670.84. The Nasdaq Composite lost 22.84 points, or 0.08 per cent, to 26,797.54.
US Treasury yields remained elevated. The 10-year yield touched 5.293 per cent, while the 30-year yield reached 5.6206 per cent, its highest level since June 2002, according to the market data cited in the report.
US economic data also provided mixed signals. Job openings fell by 256,000 to 7.079 million in August, the lowest level in five months. The Conference Board’s consumer confidence index fell 6.7 points to 81.9 in September, its lowest reading since 2014.
Meanwhile, expectations of at least a 25-basis-point Federal Reserve rate increase at the October meeting fell to 51.5 per cent from nearly 70 per cent earlier in the session, according to CME FedWatch data cited in the market report.
In Europe, shares declined as investors assessed fresh inflation data and the impact of higher energy prices. Asian markets, in contrast, mostly ended higher as some global bond yields eased.
Four new listings show mixed response
The primary market remained active, with four companies making their stock-market debut on Wednesday.
Adroit Industries (India) made a strong debut on the BSE, opening at Rs 250, a premium of 86.57 per cent over its issue price of Rs 134. The stock later traded at Rs 248.35, still representing an 85.34 per cent premium. More than 6.44 lakh shares changed hands on the BSE.
Swastika Infra opened at Rs 200 against its issue price of Rs 185, a premium of 8.11 per cent. It subsequently traded at Rs 209.95, up 13.49 per cent.
Elevate Campuses made a relatively subdued debut, opening at Rs 356.50 against an issue price of Rs 362, a discount of 1.52 per cent. The stock touched a high of Rs 373 and a low of Rs 290. Reuters reported that the student-housing company had raised about $219 million through its IPO and debuted with a valuation of around $625 million.
ArMee Infotech opened at Rs 368.85 against an issue price of Rs 375, a discount of 1.64 per cent. It later traded at Rs 295.35.
The varied performance of the four new listings came against a backdrop of heightened volatility in the secondary market.
Sun TV in focus after IPL demerger report
Among individual stocks, Sun TV Network attracted significant attention after media reports suggested that the company could consider separating its sports assets, including its Indian Premier League franchise, through a possible demerger.
The stock gained more than 7 per cent during the session. A brokerage report cited in the market report estimated the value of the IPL franchise at $1.4 billion-$1.5 billion, equivalent to roughly Rs 13,000-14,000 crore.
Sun TV owns SunRisers Hyderabad in the IPL, SunRisers Eastern Cape in South Africa’s T20 League and SunRisers Leeds in England’s The Hundred.
Importantly, the reported demerger should not be treated as a confirmed corporate action. Sun TV told the stock exchanges that it had made all disclosures required to date and that there was no impending material price-sensitive information or announcement that could affect the price or trading volume of its shares.
KSB, Power Mech gain on orders
KSB rose 4.28 per cent after announcing a $12.4-million (about Rs 118 crore) export order from Dangote Projects Free Zone Enterprise for around 18 boiler feed pump packages. The order is scheduled for execution between September 2027 and March 2028.
Power Mech Projects gained 3.79 per cent after securing a Rs 549.37-crore order from Moxie Power Generation for operation and maintenance services at its 2×600 MW Tuticorin thermal power plant. The contract runs for 60 months from October 1, 2026 to September 30, 2031.
Inox Green Energy Services fell 1.81 per cent after completing its qualified institutional placement, raising approximately Rs 299.99 crore.
HEG Advanced Materials edged higher after its subsidiary Replus Engitech signed an MoU with Indus Towers to explore battery energy storage system solutions for telecom infrastructure.
IPO demand sharply divided
The primary market presented a mixed picture on the final day of bidding for two issues and the opening day for two others.
SRIT India, which opened on September 28, received bids for 147.18 crore shares against 1.176 crore shares on offer, translating into 125.16 times subscription as of 5 pm, according to the supplied exchange data. The Rs 218.40-crore issue, priced at Rs 123-130 a share, closed for subscription on Wednesday. The issue is scheduled for listing on October 6.
Shah Investors’ Home received bids for 14.40 crore shares against 37.79 lakh shares on offer, resulting in 38.12 times subscription. Its Rs 90.17-crore issue was priced in the Rs 159-167 range and also closed on Wednesday.
By contrast, the newly opened issues saw relatively modest demand on day one. Nityas Gems & Jewellery received bids for 28.79 lakh shares against 1.4456 crore shares on offer, or 0.20 times subscription. Its price band is Rs 70-75, with the issue closing on October 5.
Vishal Nirmiti received bids for 4.617 lakh shares against 84.71 lakh shares on offer, translating into 0.05 times subscription. The issue carries a price band of Rs 208-220 and will close on October 5.
Outlook
The immediate direction of the domestic market is likely to remain sensitive to crude oil prices, foreign fund flows, US Treasury yields, inflation data and geopolitical developments. September ended as a difficult month for Indian equities, with Reuters reporting a 6.1 per cent decline in the Nifty and a 5.8 per cent fall in the Sensex during the month.
With Brent crude still above $100 a barrel and global bond yields elevated, investors are likely to continue watching the interaction between inflation, interest-rate expectations and corporate earnings. At the same time, strong demand for some new issues shows that risk appetite has not disappeared entirely from the primary market, even as the secondary market remains under pressure.
Disclaimer: This article is only for journalistic purposes. It is not investment advice. Readers are advised to consult certified financial professionals before making investment decisions.