Indian Markets Open Cautious as Nifty Slips to 23,450, Sensex Crashes 500 Points; Rupee Hits Record Low of 96.90

Domestic equity benchmarks began trading on a decidedly cautious note Wednesday morning, with the Sensex tumbling over 500 points and the Nifty sliding to the 23,450 level as persistent foreign outflows and sticky crude oil prices weighed on investor sentiment.

The 30-share BSE Sensex dropped 512 points to touch 74,689 within the first hour of trade, while the broader Nifty50 declined to 23,447, down nearly 170 points from its previous close. The sell-off was broad-based, though some defensive pockets showed resilience.

Heavyweights lead the decline

Blue-chip stocks came under significant pressure. Tata Steel, Bharat Electronics Limited (BEL), Eternal Ltd, Mahindra & Mahindra, Maruti Suzuki, Bajaj Finance, and State Bank of India were among the major losers dragging the Sensex lower. Market participants attributed the weakness to sustained selling by foreign institutional investors.

Mixed signals across sectors

Sectoral performance remained uneven. Nifty Media, Realty, Chemicals, and PSU Bank indices traded in the red, reflecting broad risk aversion. In contrast, Nifty Pharma emerged as the top gainer, rising 0.23 per cent as investors rotated into defensive healthcare names amid global uncertainty.

Rupee plunges to unprecedented low

The Indian rupee weakened by 20 paise to open at 96.90 against the US dollar – its weakest level on record. The currency’s slide comes as crude oil prices remain stubbornly above the $110 per barrel mark, raising concerns over India’s import bill and current account deficit.

“The combination of elevated oil prices and persistent FII outflows is putting double pressure on the rupee,” a currency dealer at a public sector bank said, requesting anonymity.

Global cues remain unfavourable

Overnight losses on Wall Street set a grim template. The Dow Jones Industrial Average closed 322 points lower at 49,364, while the Nasdaq shed 220 points. The S&P 500 declined 49 points to 7,354.

Asian markets followed suit on Wednesday morning. South Korea’s KOSPI tumbled 2.83 per cent (142 points) to 7,131. Japan’s Nikkei fell 1.30 per cent (786 points) to 59,764, and Hong Kong’s Hang Seng slipped 0.86 per cent (237 points) to 25,561.

FIIs continue selling spree

Provisional data showed foreign institutional investors offloaded equities worth ₹2,458 crore in the previous session, adding to the month-long exodus. Over the past 30 days, FIIs have sold Indian shares worth over ₹54,000 crore. In contrast, domestic institutional investors have stepped in as buyers, picking up ₹3,802 crore worth of stocks on Tuesday and nearly ₹65,000 crore over the past month.

Previous session’s slide lingers

On Tuesday, the Sensex had ended 114 points lower at 75,201, while the Nifty closed down 32 points at 23,618. Wednesday’s opening decline extends that losing momentum.

No Indian firm in global top-100 club

In a separate development, a Bloomberg report noted that not a single Indian company now features among the world’s 100 most valuable firms by market capitalisation. As recently as early 2025, three Indian entities – Reliance Industries, HDFC Bank, and Tata Consultancy Services – had been part of that elite list. Persistent declines in domestic stock markets have eroded their valuations, pushing them out of the global ranking.

Analysts expect market volatility to continue in the near term, with all eyes on the rupee’s trajectory and further FII activity.