Indian equity markets closed lower on Wednesday, extending their losing streak as worries over US tariffs, foreign fund outflows and geopolitical tensions continued to weigh on investor sentiment.
The Sensex fell 245 points, or 0.29 percent, to close at 83,382.71, while the Nifty 50 declined 67 points, or 0.26 percent, to end at 25,665.60. This was the seventh decline in the past eight sessions. Over this period, the Sensex and the Nifty have lost nearly 3 percent each.
Investor sentiment remained weak amid uncertainty over an India-US trade deal. The US has already imposed tariffs of up to 50 percent on certain Indian goods, and President Donald Trump has warned of an additional 25 percent tariff on countries trading with Iran.
Global risks also added to market pressure. Unrest in Iran has intensified, with reports suggesting the death toll has risen sharply, raising fears of further escalation and possible US intervention.
Foreign portfolio investors have been heavy sellers, offloading around $2 billion worth of Indian shares in January, following record outflows of nearly $19 billion in 2025.
Despite weakness in frontline indices, broader markets showed resilience. The BSE Midcap index rose 0.16 percent, while the Smallcap index gained 0.25 percent.
Nine of the 16 major sectoral indices ended in the red.
Metal stocks jumped 2.7 percent, supported by higher global base metal prices amid supply concerns and geopolitical risks.
PSU bank stocks gained over 2 percent, led by Union Bank of India, which surged nearly 8 percent, and Indian Overseas Bank, up over 2 percent, after reporting improved profits.
IT stocks weakened, with TCS falling over 2 percent. HDFC Bank slipped more than 1 percent, adding pressure on the benchmarks. Tata Elxsi dropped 5 percent after reporting a decline in quarterly profit.
Overall market breadth was mixed, with declining stocks slightly outnumbering gainers on the BSE.
Investors are now watching Q3 earnings closely and awaiting the US Supreme Court’s verdict on Trump-era tariffs, which could influence global markets in the near term.
