Summary
Markets open strong but give back 78% of gains by close — Sensex surges 590 points at open but finishes just 130 points up as Iran shuts the Strait of Hormuz. IBM’s historic 25% crash hammers Indian IT stocks.
Insurance giants ICICI Pru Life and HDFC Life surge on strong Q1 results. India VIX drops 3% despite geopolitical chaos.
The Sensex ended 130.49 points or 0.17% up at 77,185.43, and the Nifty50 gained 26.45 points or 0.11% to close at 24,078.50. The indices erased most of their sharp morning rally as Iran closed the Strait of Hormuz after the US announced fresh sanctions on Iranian ports.
• Nifty MidCap 100 up 0.62%
• Nifty SmallCap 100 up 1.04%
Impact On The Stock Market
Indian markets opened sharply higher on Wednesday, with the Sensex surging 590 points and Nifty briefly crossing 24,200, tracking firm Wall Street and Asian cues. US CPI data showed inflation cooling to 3.5% in June, reducing Fed rate hike fears. However, markets gave back 78% of gains by close as Iran shut the Strait of Hormuz in response to fresh US sanctions on Iranian ports, reigniting crude oil supply concerns.
Financial and insurance stocks were the bright spots — Nifty Financial Services gained 0.6% and PSU Banks climbed 1%. The Nifty IT index fell 0.7% after IBM’s historic 25% single-day crash raised concerns about enterprise tech spending. Metal stocks also declined on global demand worries.
Relative outperformers: PSU Banks, Insurance, Consumer Durables, Capital Goods
Lagging sectors: IT, Metals, FMCG
| Sector/Index | Performance |
| IT & BPM sector | -0.67% |
| Healthcare sector | 0.40% |
| Oil & Gas sector | 0.69% |
| Real estate sector | -0.38% |
| PSU Bank in India | 0.95% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Eternal | 294.80 | 3.02 |
| UltraTechCement | 11,812.00 | 2.75 |
| HDFC Life | 568.75 | 2.44 |
| Shriram Finance | 1,033.80 | 1.96 |
| Eicher Motors | 7,404.50 | 1.72 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Power Grid Corp | 280.70 | -1.90 |
| Hindalco | 955.80 | -1.90 |
| Larsen | 3,783.90 | -1.68 |
| JSW Steel | 1,226.90 | -1.67 |
| Tata Steel | 185.26 | -1.60 |
Market aftermath: Impact on stocks
IBM’s historic 25% crash drags Indian IT — Nifty IT falls 0.7%, Infosys leads the decline
The Nifty IT index was the worst-performing sectoral gauge on Wednesday after US tech giant IBM suffered its biggest single-day fall since 1968, wiping out nearly $70 billion in market capitalisation.
• The IBM shock: IBM crashed 25% on Tuesday after its preliminary Q2 revenue forecast missed Wall Street estimates. The company said several large customer contracts expected to close during the quarter were delayed, and enterprise customers were diverting tech budgets towards AI infrastructure (servers, networking) at the expense of software and IT services spending.
• Indian IT impact: The Nifty IT index fell 0.7%, making it the sole lagging sector at midday. Infosys dropped 1.17% to lead the Nifty50 losers. The selloff raised concerns that the enterprise tech spending slowdown flagged by IBM could spill over into Indian IT companies’ Q1 earnings and guidance.
• Selective resilience: Not all IT stocks fell equally — TCS held up relatively well on continued post-results buying. L&T Technology Services reported 13% YoY profit growth and 11.5% revenue growth in Q1, providing some reassurance about the mid-tier IT outlook.
Insurance stocks surge on strong Q1 results — ICICI Pru Life tops Nifty at +3.8%, HDFC Life gains 2.4%
Insurance and financial services stocks led the market on Wednesday as multiple Q1 earnings announcements delivered strong numbers, drawing fresh buying interest.
• ICICI Pru Life leads: ICICI Prudential Life Insurance surged 3.8%, topping the Nifty50 gainers after reporting a rise in June-quarter net profit. The company benefited from strong new business premium growth and improving persistency ratios.
• HDFC Life Insurance: Gained 2.4% ahead of its own Q1 results announcement. ICICI Lombard General Insurance and HDB Financial Services each added 1.5%, riding the sector-wide earnings optimism.
• Financial services breadth: The Nifty Financial Services index gained 0.6%, Bank Nifty rose 0.5%, and PSU Banks climbed 1%. The insurance rally helped offset the IT drag on benchmark indices.
• Earnings calendar: HDFC Life Insurance, HDFC AMC, ICICI Lombard, Union Bank of India, Groww (Billionbrains Garage Ventures), Angel One, and Jana Small Finance Bank were all scheduled to report Q1 results on Wednesday evening — keeping the earnings momentum alive.
Advit Jewels Hits Record High After Exiting T2T Segment
- Advit Jewels shares surged to an intra-day high of Rs 222 after exiting the trade-to-trade (T2T) segment, enabling normal intraday trading.
- Profit booking trimmed some gains, and the stock settled at Rs 208.70, up 6%.
- 27.08 lakh shares changed hands during the session, with a total traded value of Rs 57.01 crore.
- Since its IPO, the stock has jumped 61% in just 15 days, reflecting strong investor interest and improved liquidity.
Crude oil and commodity trends
Crude oil prices climbed for a third consecutive session as the US-Iran conflict intensified further:
• Brent crude: ~$85.22 per barrel (+0.58% on the day, third consecutive gain)
• US WTI crude: ~$79.85 per barrel (+0.64%)
Key developments on Wednesday:
• US Central Command carried out another 7-hour wave of strikes targeting dozens of Iranian military assets along the coastline and near the Strait of Hormuz, aiming to degrade Tehran’s anti-ship capabilities.
• Trump dropped the proposed 20% toll on Hormuz cargo, saying Gulf nations would instead make investment deals in the US. The International Maritime Organisation had rejected the toll as having no legal basis.
• Iran’s Persian Gulf Strait Authority warned that vessels transiting without using its preferred route would not be covered by safe passage guarantees.
• Strait traffic collapsed to just 6 vessel crossings in a 12-hour window, far below pre-war levels of ~130 daily. Trump threatened to target Iranian power plants and bridges next week unless Tehran returns to negotiations.
For India, Brent at $85+ remains a significant macro headwind. US CPI softening to 3.5% offers some global relief on rate hike fears, but elevated oil prices continue to threaten India’s trade deficit, currency, and inflation outlook.
Conclusion
Wednesday’s session was a tale of two halves — a strong opening driven by soft US CPI data, followed by a sharp reversal as Iran closed the Strait of Hormuz:
• Benchmarks: Sensex +0.17% at 77,185, Nifty +0.11% at 24,079 — erased 78% of morning rally
• Sectoral performance: PSU Banks (+1.00%), Oil & Gas (+0.80%), Real Estate (+0.50%), Healthcare (+0.40%); IT & BPM (-0.70%)
• Top movers: ICICI Pru Life (+3.8%), Shriram Finance (+2.88%), UltraTech Cement (+2.84%); Hindalco (-1.50%), Infosys (-1.17%), Power Grid (-1.10%)
• IT pressure: IBM’s 25% crash ($70B wiped) hit Indian IT sentiment; Nifty IT -0.7%
• Crude oil: Brent at ~$85.22 for a third straight gain; Iran closes Hormuz, just 6 vessels in 12 hours
• Broader market: MidCap +0.62%, SmallCap +1.04% — breadth positive at 2,203:1,896; VIX down 3%
