Indian equities closed sharply lower on Wednesday, mirroring overnight losses on Wall Street amid renewed pressure on technology and banking shares. The S&P BSE Sensex fell 0.9% to 76,755, while the NSE Nifty 50 declined 0.8% to 23,996. Infosys slipped 2% and Tech Mahindra shed 1.2%, tracking the pullback in US AI software stocks as concerns grew over higher borrowing costs and the risk that elevated infrastructure spending may fail to deliver expected returns. Rising bond yields also weighed on financials, with Axis Bank down 2% and ICICI Bank lower by 1.5%.
Geopolitical tensions added to the negative sentiment. Fresh US–Iran strikes, together with threats from Houthi forces against tankers in the Red Sea, intensified worries over potential energy supply disruptions from the Middle East. Beyond reinforcing inflationary pressures, these developments are weighing on the rupee, given India’s heavy reliance on energy imports. The weaker currency and higher import bill are prompting foreign investors to pare their exposure to Indian equities.
