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Indian stock market benchmarks, the Sensex and the Nifty 50, suffered strong losses on Wednesday, 22 April, snapping their three-session winning streak.

The Sensex crashed 757 points, or 0.95%, to end at 78,516.49, while the NSE barometer Nifty 50 plunged 199 points, or 0.81%, to settle at 24,378.10.

However, the mid and small-cap segments exhibited resilience. The Nifty Midcap 100 and Smallcap 100 indices rose by 0.19% and 1.13%, respectively.

Let's take a look at some key factors behind the fall in the Indian stock market benchmarks:

The equity benchmarks decline due to profit booking in banks and IT heavyweights amid the ongoing Q4 earnings season.

HDFC Bank, HCL Tech, Infosys, and ICICI Bank were the top drags on the Sensex index on Wednesday.

Nifty Bank declined by 0.43% after clocking a gain of 2.3% over the last three sessions.

On the other hand, the Nifty IT index crashed 3.89% after weak Q4 earnings and cautious management commentaries of some IT companies.

Meanwhile, over the last three consecutive sessions, the 30-share pack Sensex had risen by 1,285 points, or 1.6%, and the Nifty 50 had jumped 380 points, or 1.6%.

While US President Donald Trump announced the extension of the ceasefire with Iran to allow for further peace talks, there is no clarity on when the talks between the two countries will resume and how they plan to resolve the key bones of contention.

Vice President JD Vance's travel to Pakistan is on hold, pending the submission of an Iranian proposal.

The market is cautiously awaiting fresh updates from West Asia, as a prolonged conflict in the region could derail global growth momentum and raise inflationary pressures.

Major Asian markets, including Japan's Nikkei and Korea's Kospi, ended with thin gains following a fall in Wall Street indices after Iran rejected the second round of peace talks.

Sentiment across markets remains fragile due to conflicting signals about the US-Iran war. A firming US dollar and rising US treasury yields are also exerting pressure on emerging markets like India.

Brent Crude prices rebounded more than 1%, staying near the $100 per barrel, keeping investors worried about their impact on the Indian economy and stock market.

A prolonged period of higher crude oil prices can increase input costs for Indian companies, impacting their profitability.

"The rebound in crude prices to nearly $100 per barrel, coupled with persistent geopolitical uncertainty, led investors to book profits after the equity market’s sharp nearly 10% rise from recent lows," said Vinod Nair, Head of Research, Geojit Investments.

According to Nair, there could be a 2% to 4% earnings cut due to the crude oil price rise. If a peace deal is reached, the downside risk will come down.

According to Sudeep Shah, the head of technical and derivatives research at SBI Securities, the immediate resistance for Nifty is placed in the 24,530-24,550 zone. Any sustainable move above this zone could result in Nifty extending its up move towards 24,700, followed by 24,850 in the short term.

On the downside, the zone of 24,200–24,180 is likely to act as an immediate support, said Shah.

Read all market-related news here

stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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