India’s key stock indices reversed a three-day winning streak on Wednesday amid mounting concerns over geopolitical tensions in West Asia and a rise in crude oil prices. The 30-share BSE Sensex declined 756.84 points, or 0.95%, closing at 78,516.49. During the trading session, the benchmark index fell as much as 831.03 points, or 1.04%, reaching a low of 78,442.30. The broader NSE Nifty 50 index dropped 198.50 points, or 0.81%, to end at 24,378.10.

Market sentiment was dampened by heavy selling pressure in the information technology sector and a noticeable outflow of foreign funds. Foreign Institutional Investors (FIIs) sold Indian equities worth ₹1,918.99 crore on Tuesday, according to exchange data.

Among Sensex constituents, HCL Technologies recorded the steepest decline, tumbling 10.85% following its March quarter earnings report. The IT firm posted a consolidated net profit of ₹4,488 crore, up 4.2% year-on-year, but investor enthusiasm was tempered by management commentary highlighting a volatile demand environment influenced by tariff concerns and weak discretionary spending. The company projected growth of 1-4% for the fiscal year 2027. Other major laggards included Infosys, Mahindra & Mahindra, Tata Consultancy Services, Tech Mahindra, and ICICI Bank.

Analysts attributed the market downturn primarily to escalating geopolitical uncertainty in the Middle East and disruptions in critical energy supply routes. Ponmudi R, CEO of Enrich Money, noted that despite an extension of the ceasefire, persistent tensions due to the U.S. blockade and unresolved issues surrounding the closure of the Strait of Hormuz continued to elevate energy prices. This sustained upward pressure on crude oil added to investor concerns over inflation and currency fluctuations.

Hariprasad K, founder of Livelong Wealth, emphasized that stalled negotiations between the United States and Iran had reignited fears of prolonged instability in West Asia. This, in turn, weighed on risk appetite, supporting high crude prices and influencing inflation expectations.

Overall, the combination of geopolitical risks and foreign fund outflows contributed to the sharp correction in Indian equity markets, breaking the recent positive momentum witnessed in the preceding three sessions.