Although the benchmark indices opened lower, they traded negatively throughout the session and ultimately closed red.
Indian equity benchmark indices, Sensex and Nifty50, declined for the third day as Brent crude hit the $100-per-barrel mark amid escalating US-Iran tensions.
At the closing bell, the BSE Sensex closed 813 points lower (down 1.08%)
Meanwhile, the NSE Nifty closed 203 points lower (down 0.8%)
Tata Steel, Trent, and NTPC are the top gainers today.
HCL Tech, Tech Mahindra, and TCS, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 23,495, 218 points lower at the time of writing.
The BSE 150 Midcap index is trading 0.3% lower, and the BSE 250 SmallCap index is trading 0.5% lower.
Sectoral indices were trading mixed today, with the power sector and metal sector witnessing buying. Meanwhile, stocks in the IT sector and realty sector witnessed selling pressure.
The rupee is trading at Rs 95.1 against the US$.
Gold prices for the latest contract on MCX are trading at Rs 1,53,050 per 10 grams.
Meanwhile, silver prices were trading 0.2% lower at 2,39,780 per 1 kg.
5 reasons why Indian share markets are falling:
#1 Rise in crude prices:
Brent crude rose to around USD 99.33 per barrel due to rising tensions in West Asia. Higher oil prices could increase inflation, widen India's trade deficit and slow economic growth.
#2 Weak global cues:
Asian markets, including Japan's Nikkei and Hong Kong's Hang Seng, traded lower, while US markets also ended in the red. Ongoing tensions in the Middle East are keeping oil prices and global market volatility high.
#3 FII selling:
Foreign institutional investors sold Indian equities worth Rs 123.19 crore on September 8. Continued FII selling can put pressure on Indian stocks and weaken market sentiment.
#4 Rupee declines:
The Indian rupee fell 21 paise to 94.95 against the US dollar, mainly due to rising crude oil prices and US-Iran tensions. A weaker rupee can increase the cost of imports and add to inflationary pressure.
#5 Selling in IT shares:
The IT index fell 3%, with Coforge dropping 6% after Chairman Om Prakash Bhatt resigned. The resignation followed concerns raised by an internal audit about the company's board evaluation process.
Biocon Shares Rise After Deal, Brazil Expansion
Biocon Ltd shares came into focus on Wednesday following a block deal. Around 16.6 million shares were reportedly traded in a single pre-market block transaction on the BSE.
The company also announced a partnership with Bahiafarma and Bionovis to produce and commercialise Pertuzumab in Brazil for HER2-positive breast cancer treatment.
The Biocon-led consortium received 100% allocation under Brazil's 10-year Productive Development Partnership (PDP) programme for Pertuzumab.
Under the agreement, Biocon will receive milestone payments and a share of revenues from the Brazil PDP opportunity over the 10-year period.
HCLTech Launches Advanced Semiconductor Lab Bengaluru
HCLTech has launched an advanced semiconductor laboratory in Bengaluru with an investment of Rs 1.85 bn. The 40,000-square-foot facility will provide advanced testing, post-silicon engineering and failure analysis services.
The lab is equipped with advanced tools from Teradyne, Advantest, Keysight, Tektronix and Thermo Fisher Scientific. It will support research, pre-production and production testing, helping global customers reduce turnaround time and improve product quality.
The facility follows HCLTech's Spec2Parts model, offering a single platform for electrical validation, automated testing, qualification and failure analysis. This will help streamline the process from semiconductor design specifications to finished parts.
HCLTech said the facility highlights its commitment to building advanced engineering and R&D capabilities in the semiconductor sector.
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