Sensex, Nifty open in red as global volatility returns

Domestic equity benchmarks opened lower on Wednesday as weak global cues and rising geopolitical tensions weighed on investor sentiment.

The Nifty 50 opened at 25,675.05, down 52.50 points or 0.20 per cent, while the BSE Sensex slipped 487.07 points, or 0.58 per cent, to start the session at 83,252.06.

Market participants pointed to heightened global volatility as the primary reason for the cautious opening.

Ajay Bagga, banking and market expert, told ANI that global markets are adjusting to an increasingly uncertain environment. He said that while optimism around a recent India–US trade breakthrough had supported sentiment earlier, fresh escalation in Middle East tensions and sharp technical selling in US technology stocks had dampened Asian market cues. He added that despite near-term pressure, domestic sentiment remains supported by the trade deal, with export-oriented sectors such as pharmaceuticals and textiles likely to show resilience.

Technology stocks remained under pressure globally during early trade. The weakness was driven by two key factors. Concerns intensified after the launch of a new automation tool by Anthropic, which investors fear could disrupt the core business models of established software firms. This led to a sharp 4 per cent fall in the US software sector on Tuesday.

In addition, Advanced Micro Devices (AMD), after market hours, issued a weaker-than-expected revenue outlook, fuelling concerns that demand for artificial intelligence chips may be nearing a peak. This dragged down Asian semiconductor stocks, particularly in markets such as Tokyo and Seoul.

Geopolitical developments further weighed on sentiment after the United States shot down an Iranian drone reportedly approaching a US aircraft carrier in the Persian Gulf. The incident coincided with reports of Iranian armed boats harassing a US-flagged vessel in the Strait of Hormuz.

These developments pushed crude oil prices higher, with Brent crude rising nearly 2 per cent and moving toward the $68 per barrel level amid fears of potential supply disruptions in a key global energy route.

In the broader market, the Nifty 100 index declined 0.16 per cent, while the Nifty Midcap 100 slipped 0.11 per cent. The Nifty Smallcap 100 managed to stay marginally positive, gaining 0.03 per cent.

Sector-wise, performance remained mixed. Nifty Auto rose 0.24 per cent, Nifty FMCG gained 0.26 per cent, and Nifty Metal advanced 0.56 per cent. IT stocks, however, saw sharp selling pressure, with the Nifty IT index plunging 3.75 per cent.

Meanwhile, safe-haven assets attracted strong buying interest. Gold prices surged 3 per cent to Rs 1,58,400 per 10 grams for 24-carat gold, while silver prices jumped 4 per cent to Rs 2,78,735 per kilogram.