Indian shares fall as IT, Reliance drag; losses deepen in closing auction
- Nifty 50 was 0.52% lower at 24,207.75 and the BSE Sensex 0.24% lower at 77,472.94
Indian shares fell on Wednesday, as losses in information technology stocks and Reliance Industries countered gains in heavyweight financials and optimism from a dip in oil prices.
The decline deepened in the closing auction, with the Nifty 50’s indicative close down by as much as 1.4%.
At the close, the Nifty 50 was 0.52% lower at 24,207.75 and the BSE Sensex 0.24% lower at 77,472.94.
They were marginally down at 0.24% and 0.05%, ahead of the CAS.
Ten of the 16 major sectors fell. IT stocks led losses with a 1.5% drop, with analysts attributing the slide to concerns over higher costs from U.S. visa curbs and caution ahead of Nvidia earnings.
The Trump administration on Monday proposed formalising an unprecedented $103,265 fee on new H-1B visas. Nvidia’s earnings, later in the day, are likely to test whether AI spending can sustain lofty expectations, which have fuelled AI-linked stocks and left Indian IT shares out of favour.
“Indian IT fortunes continue to be linked to business traction and news-flow of AI companies,” said analysts led by Yogesh Aggarwal, head of research, India of HSBC Securities and Capital Markets.
“We expect Indian IT to see the worst impact of AI deflation in FY2027, with backdrop improving from FY2028 onwards.”
Oil-to-telecom conglomerate Reliance Industries fell 1.4%, adding to the pressure on benchmark indexes.
While a drop in oil prices below $86 levels is a positive for India’s economy and markets, “the inability of the benchmarks to capitalise on the favourable trigger indicates a cautious undertone,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.
Heavyweight financials and private banks climbed between 0.5% and 1.1%. The broader small-caps added 0.8%, while mid-caps closed flat.
Investors were likely rotating their positions based on earnings expectations for fiscal 2027, according to analysts.
Among other stocks, Varun Beverages fell 3.8% as analysts flagged execution risks to its foray into the alcohol segment.
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