Indian equities fell on Thursday, reversing part of a strong rally from the previous session, as renewed Middle East tensions dampened hopes that the Iran-U.S. ceasefire would bring lasting peace.
The Nifty 50 dropped 0.93% to 23,775.1, while the Sensex declined 1.2% to 76,631.65. Ten of 16 major sectors saw losses, though mid-cap and small-cap indices rose 0.3% and 0.2%, respectively.
Financial stocks led the declines, with the Nifty Financials falling 1.4% after surging 5.5% in the previous session. Shares of HDFC Bank and ICICI Bank fell 2.3% and 2.1%, respectively.
Fund manager Siddharth Vora of PL Capital said the previous 4% rally in Nifty 50 and Sensex was largely driven by temporary easing of fears, but such relief rallies are likely to repeat as markets remain sensitive to headline developments from the Middle East.
U.S. President Donald Trump’s commitment to retain military assets in the region until a peace deal with Iran is reached, along with warnings of escalation, added to investor caution. Brent crude prices rose 3.5% to $98 per barrel.
In sectoral moves, Tata Consultancy Services (TCS) gained 1.2% ahead of its earnings report, lifting the IT index 0.2%, though gains were capped by concerns over artificial intelligence disruption following U.S. firm Anthropic’s launch of the Mythos model.
Conversely, metal stocks bucked the broader trend, rising 1.3%, with aluminum makers Hindalco and Vedanta up 3.6% and 2.2%, respectively.
Recruitment services firm Info Edge lost 2.9% after reporting slower growth in billings for the March quarter compared to the October-December period.
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