Mid-day Market: Sensex falls nearly 200 pts amid geopolitical tensions, Fed jitters

After a positive start to the session, benchmark indices Sensex and Nifty erased early gains by the afternoon as weakness in IT, metal, and oil & gas stocks dragged markets into the red. Geopolitical tensions and caution ahead of the U.S. Federal Reserve’s policy decision later today are keeping investor sentiment subdued.

By 1:30 pm, the Sensex was down 197.43 points (0.24%) at 81,385.87, while the Nifty fell 55.40 points (0.22%) to 24,798.00. Market breadth remained weak, with 1,879 stocks declining, 1,466 advancing, and 138 unchanged on the NSE.

Geopolitical Overhang and Fed Outlook in Focus

Global sentiment remains fragile amid rising tensions between Israel and Iran, further exacerbated by reports that Donald Trump is considering a military strike on Tehran, escalating the already fragile Middle East situation. Investors are also bracing for commentary from the U.S. Federal Reserve, which is widely expected to hold rates steady but could offer cues on future rate trajectories amid geopolitical and inflationary pressures.

Sectoral Pressure Broad-Based

Most NSE sectoral indices traded in the red, with Nifty IT and Nifty Metal leading the losses, both down 0.73%. Nifty Energy, FMCG, Infra, and Oil & Gas also saw moderate declines. Nifty Auto managed to buck the trend, rising 0.57%, though well off its intraday highs.

Broader markets mirrored the weakness:

Nifty Midcap 100: down 0.53%

Nifty Smallcap 100: down 0.20%

India VIX eased 0.49% to 14.33, indicating marginally lower volatility.

Stock Highlights: IndusInd, Maruti in Focus

IndusInd Bank surged nearly 4% after Nomura upgraded the stock to “Buy” and raised its target price to ₹1,050 from ₹700. The brokerage cited resolution of legacy issues and projected return on assets (RoA) hitting 1% by FY27.

Maruti Suzuki rose 2% amid reports that the Indian government is exploring Australia as an alternative supplier for rare-earth magnets, a key input for electric vehicles. The move could benefit Maruti as it prepares to roll out its first EV, the E-Vitara.

Hindustan Zinc Slumps After Block Deal

On the downside, Hindustan Zinc plunged 6% after promoter Vedanta offloaded a 1.71% stake (7.2 crore shares) through block deals worth approximately ₹3,323 crore. The floor price of ₹460.5 per share was more than 5% lower than Tuesday’s close.

Top Gainers and Losers on Nifty

IndusInd Bank, Trent, Eicher Motors, Maruti Suzuki, Mahindra & Mahindra (M&M) were the top gainers on Nifty till the afternoon. While, top laggards included Hindustan Unilever (HUL), Adani Ports, Nestle India, Tata Consultancy Services (TCS), Apollo Hospitals.