The Indian stock market continued its fall on Wednesday, while Nifty managed to stay above 24,000, despite the selling pressure. The Sensex lost 326 points to end at 76,910 while the Nifty dropped seven points to close at 24,078.

Key Highlights

• The Sensex dipped 326 points to close at 76,910 for a seventh consecutive session while the Nifty remained above the 24,000 level.
• Sugar and hotel stocks surged, as CLSA has downgraded TCS, Infosys and Tech Mahindra to Hold, which takes a hit on IT stocks.

The Nifty Bank index lost 23 points to close to level 57,240, while the Nifty Midcap gauge was down 131 points to 63,409. The session saw a weak market breadth as 34 Nifty stocks ended the day in red and advanced-decline ratio was at 1:2.

IT Stocks Erase Gains After CLSA Downgrades

The gains of the information technology sector were reversed after CLSA, an investment banker, downgraded most of the big IT stocks. According to Nikhil Gupta, an analyst with CLSA, it was a mixed quarter for Indian IT and global systems integrators, as the mid-tier IT vendors are viewed as better positioned to ride the changes in the structure of the industry. CLSA maintained its "High Conviction Outperform" rating on Coforge and Persistent Systems and kept an "Outperform" rating on HCLTech and LTIMindtree, while lowering the ratings of TCS, Infosys and Tech Mahindra to "Hold" and Wipro and Mphasis to "Underperform" due to "long gestation periods" and "structural concerns".

The capital goods segment was also hit hard, with Hitachi Energy and CG Power leading the sell-off on the day.

Defence and Consumer Staples Stocks Under Pressure

Defence stocks were some of the worst performers in the midcap category, where Bharat Dynamics' share dipped 3%. The stocks of Page Industries were extending a losing streak, losing another 3% on the day and 12% month to date.

Other indices were also on a downward trend, with the Nifty FMCG stumbling by more than 350 points from the day's peak, led byColgate Palmolive (down 1.81%), Radico Khaitan (down 1.40%), ITC (down 1.33%), Hindustan Unilever (down 1.30%) and Varun Beverages (down 1.27%).

Also Read: Sensex and Nifty Drop Sharply Today Dragged by IT and Realty Stocks

Financials and Select NBFCs Outperform

Financial stocks relatively outperformed the broader market, with select NBFC names attracting buying interest. PNB Housing Finance was among the top gainers of the session, while PB Fintech rose more than 2% and Info Edge ended 2% higher.

Gold-related stocks came under pressure as falling gold prices weighed on Manappuram Finance and Muthoot Finance, both of which declined up to 2%.

Sugar and Hospitality Stocks Buck the Trend

Sugar stocks extended their recent gains, with Bajaj Hindusthan Sugar rising more than 10% amid a broader uptrend in domestic sugar prices ahead of the festive season. Oriental Hotels also saw a sharp move, closing 15% higher, while Leela Palaces Hotels shares surged to a fresh record high during intraday trade.

Rupee Weakens Further Against the Dollar

The Indian rupee ended at 95.75 against the US dollar on Wednesday, weakening from Tuesday's close of 95.68 — a decline of 7 paise, continuing its recent downward trend amid elevated crude oil prices and global uncertainty.

Crude Oil Extends Gains for Fourth Straight Day

Crude oil prices jumped for a fourth straight day after fresh attacks in West Asia, which Iran has denied involvement in. US and Iran continue a standoff over control of the Strait of Hormuz with both brent crude and West Texas Intermediate above the $90 and $85 price levels respectively.

Global Markets Under Pressure

Stocks tumbled across Asia, with a massive sell-off of semiconductors denting a downtrend in the stock market.Rising bond yields and strengthening oil prices helped Asian stocks slide, with semiconductor shares leading a massive sell-off. The sell-off came after a big drop in US tech stocks overnight, as the Nasdaq Composite fell 1.33%. South Korea's Kospi falls more than 6% on the day, Nikkei 225 and Topix of Japan drop by over 2% respectively and Hang Seng futures in Hong Kong decline 0.3%.

Stock-Specific Highlights

Zaggle Prepaid Ocean Services shares rebounded sharply, jumping over 10% a day after a 20% fall, while Himadri Speciality Chemicals slumped nearly 8% to emerge as the worst performer on the Nifty 500. Netweb Technologies has been down more than 4% on opening day after making gains in year-to-date performance, while newly listed Milky Mist has rallied by 10% on its second day of trading.

Sammaan Capital stock climbed more than 3% on its release, after the firm clarified it wasn't involved in any investigation related to its former promoter that was being looked into by the Supreme Court, soothing calm investor nerves..

Shiprocket Makes Stock Market Debut

Shares of Shiprocket made their much-awaited stock market debut on Wednesday, following strong demand for its Rs 1,617.5-crore IPO, which was subscribed 99.38 times at the close of bidding. The stock was expected to list at a premium of over 37% based on grey market trends, with its GMP standing at Rs 36 per share ahead of listing.