Indian benchmark indices extended losses for the third consecutive session on Wednesday, retreating sharply from morning highs as selling pressure in financials, retail, and broader markets weighed on sentiment.

The Nifty 50 declined 82 points to close below the 25,800 mark at 25,758, while the Sensex dropped 275 points to 84,391. Market breadth remained weak, with the NSE advance-decline ratio standing at 2:3, indicating broad-based selling pressure.

Broader markets saw deeper cuts. The Nifty Midcap 100 index fell sharply by 668 points to 59,007, while the Nifty Bank lost 262 points to settle at 58,960 due to weakness in financial stocks.

Global Cues Drive Sentiment
Analysts noted that global developments continued to influence market direction.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “Volatility in global equities has intensified. Rising Japanese bond yields and signals of potential monetary tightening by the Bank of Japan are triggering risk-off moves across emerging markets.”
He added that while a 25-basis-point rate cut by the U.S. Federal Reserve is widely anticipated tonight, mixed economic data and internal divisions within the Fed could cloud the outlook for further easing in 2026.

Sectoral Performance

• Electronics Manufacturing Services (EMS) stocks witnessed significant declines, with Kaynes Technology, Dixon Technologies, Amber Enterprises, and PG Electroplast dropping up to 10%.
• Midcap IT stocks softened ahead of the Fed’s policy announcement, led by a 4% fall in Persistent Systems.
• Airline stocks faced pressure after the aviation regulator ordered carriers to reduce winter schedules by 10%. InterGlobe Aviation (IndiGo) fell over 3%.
• Metal stocks bucked the downtrend on hopes of U.S. rate cuts. Vedanta and Hindalco gained around 1%, while Hindustan Zinc surged over 4% as global silver prices hit fresh record highs.

Other Key Movers

• Capital-market intermediaries extended losses for a second session, with BSE, Angel One, and Groww among the top decliners.
• AU Small Finance Bank rose more than 2% after the Finance Ministry approved an increase in its foreign investment limit to 74% from 49%.
• New listings Meesho, Aequs, and Vidya Wires closed their debut sessions with gains despite the broader market weakness.

Outlook
According to Nair, domestic markets are also contending with persistent foreign fund outflows, a weakening rupee, and uncertainty surrounding ongoing U.S.-India trade discussions. Near-term direction is expected to hinge on central bank guidance and greater clarity on trade negotiations.