The Indian benchmark indices faced a choppy trading session on Wednesday, thereby continuing the fall for the third consecutive session. Investor sentiment largely remained ambiguous amid the falling rupee, weak global cues and expectations from the upcoming Union Budget. The Indian rupee extended its fall, sliding 32 paise to touch a fresh all-time low of 91.29 against the US dollar. The sell-off was triggered as escalated global trade tensions have increased risk aversion and kept emerging market currencies under pressure.

The Sensex ended at 81,909.63, down 270.84 points or 0.33%. The index recovered nearly 1,000 points from the day’s low, but selling pressure ensured it still closed in the red. The Nifty50 settled at 25,157.50, slipping 75 points or 0.30%, mirroring the late-session pullback despite intraday recovery. This comes after yesterday’s massive fall. On Tuesday, the Sensex crashed 1,065.71 points, or 1.28%, to close at 82,180.47, while the Nifty50 fell 353.00 points, or 1.38%, to 25,232.50. 

ICICI Bank and Trent emerged as the top laggards in today’s trade, each declining by 2.10% and 1.98%, respectively. Tata Consumer Products and Bharat Electronics also declined between 1.50% and 1.70%. 

Closing the session on a high note was Eternal, which advanced nearly 5% as it is set to announce its Q3 earnings today. InterGlobe Aviation and Max Healthcare also closed in the green, rising around 1.40% each. 

In the Nifty50 pack, 23 companies advanced, and 27 declined, whereas in the Sensex pack, 13 companies traded positively, while the remaining 17 declined. 

Amidst individual stocks, Shares of Kalyan Jewellers India came under intense selling pressure on Wednesday, sliding nearly 14% to hit a fresh 52-week low, as the jewellery stock extended its losing streak for the ninth consecutive session. Shares of Piccadilly Agro Industries surged nearly 15% in intraday trade on Wednesday, as investors reacted positively to the company’s December-quarter (Q3) earnings and improving outlook for its premium alcoholic beverages portfolio.

Sector-wise, most indices ended in the red, with consumer durables, chemicals, and private banks leading the losses. Nifty Metal and Oil & Gas were the only sectors that offered some support. The broader markets also remained weak, with the Nifty Midcap index falling 1.14% and the Nifty Smallcap index declining 0.90%, reflecting broad-based selling pressure.

Meanwhile, gold prices surged to fresh all-time highs on Wednesday, driven by strong safe-haven demand and a sharp rally in global markets. On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped by ₹7,774, or 5.16%, to touch a record ₹1,58,339 per 10 grams. 

Market outlook

According to Ponmudi R, CEO, Enrich Money, the Indian equity markets ended the session on a cautious to negative note as mixed cues from Asian peers and sharp losses in overseas markets, along with continued weakness in the rupee, kept investor risk appetite subdued. 

“The rupee slipped further to around 91.64 against the dollar, reflecting strong dollar demand and reviving concerns over imported inflation and near-term capital flow stability. While the European Union’s description of the India–EU trade pact as 'historic' offered a constructive medium-term signal for India’s external trade outlook, the lack of immediate clarity on implementation and fresh tariff rhetoric from U.S. President Donald Trump curtailed any near-term optimism in domestic equities,” he said.