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Mumbai (Maharashtra) [India], February 4 :
Indian stock markets opened lower on Wednesday as global volatility increased following fresh tensions in the Middle East and sharp selling in US technology stocks.
At the opening bell, benchmark indices traded in the red, reflecting cautious investor sentiment.
The Nifty 50 opened at 25,675.05, down 52.50 points or 0.20 per cent. Meanwhile, the BSE Sensex slipped 487.07 points, or 0.58 per cent, to 83,252.06.
Global Volatility Weighs on Markets
According to market experts, rising global uncertainty drove the weak opening.
Banking and market expert Ajay Bagga said global markets are entering a highly volatile phase.
He explained that optimism from a recent India–US trade breakthrough faded quickly. Escalating Middle East tensions and a sell-off in US big-tech stocks clouded Asian market sentiment.
Despite short-term pressure, Bagga said the underlying outlook for India remains positive. Export-oriented sectors like pharmaceuticals and textiles may continue to show strength.
IT Stocks Under Heavy Pressure
Technology stocks remained under strong selling pressure during morning trade.
Concerns intensified after Anthropic launched a new automation tool. Investors fear it could disrupt established software business models.
As a result, the US software sector fell nearly 4 per cent on Tuesday.
After market hours, Advanced Micro Devices issued a weak revenue forecast. This raised concerns that demand for AI chips may be slowing.
Consequently, Asian chipmakers in markets such as Tokyo and Seoul came under pressure.
Middle East Tensions Push Oil Higher
Geopolitical developments further weighed on investor sentiment.
Reports said the United States shot down an Iranian drone near a US aircraft carrier in the Persian Gulf.
In addition, Iranian armed boats allegedly harassed a US-flagged vessel in the Strait of Hormuz.
Following the escalation, oil prices surged. Brent crude jumped nearly 2 per cent toward the $68 per barrel mark.
Broader Market and Sectoral Performance
Across the National Stock Exchange, broader indices showed mixed trends.
The Nifty 100 slipped 0.16 per cent, while the Nifty Midcap 100 declined 0.11 per cent. However, the Nifty Smallcap 100 edged up 0.03 per cent.
On the sectoral front, auto, FMCG, and metal stocks posted gains. Nifty Auto rose 0.24 per cent, Nifty FMCG added 0.26 per cent, and Nifty Metal climbed 0.56 per cent.
In contrast, IT stocks saw heavy losses, with the Nifty IT index plunging 3.75 per cent.
Gold and Silver Gain as Safe Havens
Meanwhile, safe-haven assets attracted strong buying interest.
Gold prices surged 3 per cent to Rs 1,58,400 per 10 grams for 24-carat gold.
Silver prices also jumped 4 per cent to Rs 2,78,735 per kilogram on Wednesday.
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