Indian Stock Indices Volatile Amid US Visa and Sanctions News

The BSE Sensex and NSE Nifty indices saw volatile trading between Tuesday and Wednesday, shifting from a late-session recovery to a general decline. On Tuesday, the Sensex rose 286.98 points to 77,656.09 and the Nifty increased 115.50 points to 24,334.55. This recovery was driven by a 3% drop in Brent crude oil prices to $89.32 per barrel after U.S. sanctions against Iran failed to meet market expectations, alongside short covering during the monthly derivatives expiry.

This momentum reversed on Wednesday as both benchmarks ended lower. The Sensex fell 183.15 points to close at 77,472.94, while the Nifty 50 declined 126.80 points to settle at 24,207.75. The downturn was led by sharp losses in the IT, FMCG, automobile, and realty sectors. Specifically, the IT sector declined following a pause in US visa appointments amid an immigration crackdown, which sparked concerns over margin pressure for firms like Infosys.

While banking, metal, and cement indices remained resilient due to tempered sanctions on Iran and easing energy costs, overall investor sentiment remained cautious. Market participants are now awaiting US Core PCE inflation data and an earnings report from Nvidia to determine the global risk appetite and future interest-rate outlook.