09 September,2026 10:31 AM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic equity benchmark indices continued to decline in early trade on Wednesday as crude oil prices that hovered near USD 100 per barrel due to the escalating tensions between US and Iran dented investor sentiment. The offloading in IT stocks in the early deals also dragged the indices lower.
The 30-share BSE Sensex slumped 463.57 points or 0.61 per cent at 75,114.01 in the initial trade. The 50-share NSE Nifty dropped 122.80 points or 0.52 per cent to 23,512.30 in the early trade.
According to analysts the booming primary market with heightened activity around initial public offering (IPO) is also weighing on the benchmark indices.
"The listing gains from IPOs, which has increased to about 22 per cent since June, are driving investors- both retail and institutional into the IPO market. This is understandable since Nifty return year to date is negative 9.5 per cent. Even Foreign Institutional Investors (FIIs) who have sold equity for Rs 2,84,000 crores through the exchanges so far this year have put in about Rs 36,000 crores in IPOs so far this year. Everyone is riding the momentum in the IPO market. This frenzy has pushed up the IPO valuations, too. IPOs are getting subscribed irrespective of valuations," V K Vijayakumar, Chief Investment Strategist, Geojit Investments said.
In the early deals, among the Sensex constituents, NTPC, Larsen & Toubro, Power Grid, Sun Pharma, Adani Ports were the gainers, while IT stocks declined over 2 per cent. HCL Tech, Tech Mahindra, Infosys and TCS all were trading low, with HCL Tech shares declining 3.04 per cent.
On Tuesday, Sensex tanked 555.23 points, or 0.73 per cent, to settle at 75,577.58, while the Nifty declined 144.05 points, or 0.61 per cent, to end at 23,635.10.
"Asian markets are offering some respite this morning, with the Nikkei gaining around 0.7 per cent and the Kospi trading modestly higher. However, Brent crude above USD 99 a barrel, a six-week high, remains a key concern for India, given its high dependence on crude imports," Rajesh Palviya, Head of Research, Axis Direct said.
"For now, market direction will remain closely tied to crude oil prices and developments in the Middle East; any moderation on either front could trigger a stabilisation and a recovery in equities," he added.
According to news agency PTI, Brent crude, the global oil benchmark, traded 1.44 per cent higher at USD 99.33 per barrel, while Foreign Institutional Investors (FIIs) offloaded equities worth Rs 123.19 crore on Tuesday.
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index traded higher while Japan's Nikkei 225 and Hong Kong's Hang Seng index quoted lower.
(With inputs from PTI)
