FX.co ★ Indian Stocks Retreats

India’s BSE Sensex fell about 1.2% to 73,765 at the open on Wednesday, erasing the previous session’s gains as rising tensions in the Middle East drove oil prices higher and dampened risk appetite. Concerns over stalled US–Iran diplomatic efforts and renewed regional hostilities pushed Brent crude up roughly 1.1% to nearly $97 per barrel, pressuring the oil‑importing economy.

Persistent foreign selling remained a major headwind, with overseas investors dumping Indian equities worth $877.91 million in the previous session, extending net outflows to a third consecutive day. Market participants also awaited the release of India’s final HSBC Composite and Services PMI readings for May later in the day, with consensus forecasts at 58.1 and 59, respectively.

Technology stocks led the decline, sliding about 3.7% after overnight weakness in global software names. Among the worst performers were LTM (-6%), TCS (-6%), Tech Mahindra (-5%), Coforge (-4%), Infosys (-3.8%), and HCL (-3.3%).