Key gauges fall for 3rd day due to geopolitical tensions

Indian equity benchmarks ended with losses for the third straight session on Wednesday as heightened geopolitical tensions, weak global peers and persistent foreign fund outflows unnerved investors. Besides, ongoing weakness in the rupee also added to the pressure in the markets. However, value buying in select stocks helped the indices recover from the day’s low. 

Some of the important factors in trade:

December sees slower 3.7% growth in eight key infrastructure sectors output: The Ministry of Commerce & Industry’s data showed the output of eight key infrastructure sectors grew at a slower pace of 3.7 per cent in December 2025 as compared to 5.1 per cent in the same month last year.

European Union on verge of sealing historic trade agreement with India: European Commission President Ursula von der Leyen has said that European Union (EU) is on the verge of sealing a historic trade agreement with India that is being called 'the mother of all deals'. Leyen asserted it will create a market for 2 billion people or about one-fourth of the global GDP. 

Aggregate revenue for corporates in India to rise by 6% in FY27: Fitch Ratings said the aggregate revenue for its rated corporates will rise by 6 per cent in FY27 on steady GDP growth and an improved consumer-spending outlook, following a comprehensive reduction in GST rates.

Rupee slumps to record low against dollar: Indian rupee depreciated to an all-time low against the American currency, weighed down by persistent foreign fund outflows amid a cautious global mood.

Global front: European markets were trading lower with ongoing trade jitters linked to Greenland keeping investors on edge. Asian markets settled mixed as risk aversion gripped financial markets on the back of rising bond yields and U.S. President Donald Trump's renewed push to acquire Greenland.

Finally, the BSE Sensex fell 270.84 points or 0.33% to 81,909.63 and the CNX Nifty was down by 75.00 points or 0.30% to 25,157.50.   

The BSE Sensex touched high and low of 82,407.05 and 81,124.45 respectively. There were 13 stocks advancing against 17 stocks declining on the index.        

The broader indices ended in red; the BSE Mid cap index fell 1.01%, while Small cap index was down by 0.80%.

The top gaining sectoral indices on the BSE were Metal up by 0.52%, Energy up by 0.28%, Oil & Gas up by 0.20% and Basic Materials up by 0.04%, while Consumer Durables down by 1.24%, Bankex down by 0.94%, Capital Goods down by 0.92%, Industrials down by 0.91% and FMCG down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 4.98%, Ultratech Cement up by 1.57%, Interglobe Aviation up by 1.37%, Reliance Industries up by 0.75% and Adani Ports &SEZ up by 0.70%. On the flip side, ICICI Bank down by 1.96%, Trent down by 1.78%, Bharat Electronics down by 1.59%, HDFC Bank down by 1.18% and Larsen & Toubro down by 1.13% were the top losers.

Meanwhile, Fitch Ratings has said the aggregate revenue for its rated corporates in India will rise by 6 per cent in FY27. It attributed expected rise in revenue to steady Gross Domestic Product (GDP) growth in the country and improved consumer-spending outlook, following a comprehensive reduction in Goods and Services Tax (GST) rates. Though, it cautious that corporates may face some downside risks if additional US tariffs are imposed or in case of a sharp depreciation of the rupee.

Fitch has recently revised India's GDP growth forecast for FY26 to 7.4 per cent, from 6.9 per cent, and estimates annual growth of 6.4 per cent and 6.2 per cent over FY-27 and FY28, respectively. It anticipated that GDP growth and robust infrastructure spending to underpin healthy demand for cement and building materials, electricity, petroleum products, steel, and engineering and construction (E&C) companies during FY27.

The Indian corporates which are rated by Fitch generally have low direct exposure to the current US tariffs, but unaffected sectors, including pharmaceuticals, could be hit by further US tariff announcements. Direct effects on domestically focused sectors, such as oil and gas (upstream and downstream), cement and building materials, engineering and construction, telecom, and utilities, should be minimal, supported by local demand and regulatory stability.

It noted that potential additional tariffs, if sustained at levels significantly higher than in other Asian markets, could weigh on economic growth, affecting the operating performance of more Indian companies. It added the steel and chemicals sectors will face pricing pressure if US tariffs divert supply to other markets, including India.

CNX Nifty touched high and low of 25,300.95 and 24,919.80 respectively. There were 23 stocks advancing against 27 stocks declining on the index.    

The top gainers on Nifty were Eternal up by 4.90%, Interglobe Aviation up by 1.40%, Max Healthcare Institute up by 1.32%, Hindalco up by 1.28% and JSW Steel up by 1.28%. On the flip side, ICICI Bank down by 2.10%, Trent down by 1.98%, Tata Consumer Product down by 1.69%, Bharat Electronics down by 1.50% and HDFC Life Insurance Company down by 1.24% were the top losers.   

European markets were trading lower; UK’s FTSE 100 decreased 15.13 points or 0.15% to 10,111.65, France’s CAC fell 16.58 points or 0.21% to 8,046.00 and Germany’s DAX lost 118.82 points or 0.48% to 24,584.30.

Asian markets settled mixed on Wednesday tracking Wall Street’s fall overnight as risk aversion gripped financial markets on the back of rising bond yields and US President Donald Trump's renewed threats of tariffs against European nations over the proposed purchase of Greenland. Japanese shares fell after Finance Minister Satsuki Katayama called for calm among market participants following a rout that pushed yields to all-time highs. Chinese shares gained marginally due to hopes that China will increase policy support this year following pledges to roll out additional fiscal and monetary stimulus. Seoul shares rose after data showed South Korean exports rose 14.9% year over year in the first 20 days of January, led by a 70% jump in semiconductor shipments.