Indian shares trim losses on foreign inflow hopes

Indian shares pared some of their intraday losses on Wednesday on reports of likely government measures to stem the rupee's slide, attract foreign bond investors, and review the long-term capital gains tax, reports Reuters.
However, a pullback in IT stocks after a recent rally and rising oil prices kept markets in the negative territory.
The Nifty 50 closed 0.33 per cent lower at 23,405.6, while the BSE Sensex lost 0.41 per cent to 74,346.17. The benchmarks had dropped about 1.5 per cent intraday.
"The late recovery was driven ?by short covering after reports about tax cuts for foreign bond investors. This led to anticipation about similar steps for equity markets," said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
India's limited exposure to direct AI beneficiaries and elevated oil prices have propelled foreign outflows worth record $26.8 billion from the country's stocks this year.
The benchmarks have dropped in five of the last six trading sessions, with Tuesday's session being the only break.
Brent crude rose about 3 per cent to $99 a barrel on Wednesday as Gulf hostilities flared and diplomacy between Washington and Tehran showed little progress.
Higher oil prices weigh on current account, economic growth and trigger inflationary pressures on India, the world's third-largest crude importer.
Seven of the 16 major sectors declined.
The broader small-caps and mid-caps fell 0.1 per cent and 0.4 per cent, respectively.
The IT index lost 5.6 per cent in its worst session in four months, unwinding part of a 7.6 per cent three-day rally as investors weighed AI-led disruption and a muted earnings outlook against cheaper valuations. The sub-index has dropped 22.4 per cent so far in 2026.
TCS fell 8.4 per cent, while Infosys and HCLTech slid 3.8 per cent and 5.3 per cent, respectively.