FX.co ★ Indian Stocks Pull Back

On Wednesday, Indian equities relinquished early gains, ending the day on a down note, aligned with a lackluster performance observed in most major Asian markets as geopolitical tensions continued to weigh heavily on investors' risk appetite. The BSE Sensex saw a decline of 0.2% to settle at 81,440, while the NSE Nifty 50 similarly fell 0.2% to finish at 24,810. Heightened tensions were exacerbated by assertive comments from U.S. President Trump concerning the ongoing conflict between Israel and Iran, dampening expectations for a swift de-escalation of hostilities. The increase in geopolitical risk premiums for stocks was compounded by a surge in crude oil prices, which threatened to reverse recent progress in India's disinflationary trends and challenged the rupee's resilience against capital outflows related to oil imports. Technology sector stocks faced downward pressure, with leading firms such as TCS, HCL Tech, Infosys, and Wipro experiencing declines ranging from 0.4% to 0.5%. Energy and utility sectors were not spared, with significant players like Power Grid and Larsen & Toubro each seeing their shares fall by approximately 1%.