Indian equity benchmarks extended their sharp decline for the third consecutive session on Wednesday, with the selloff broadening across most sectors. Information technology stocks bore the brunt of the decline, while the metals index was the only major sectoral gauge to end higher.

The 30-share BSE Sensex pack tumbled 813.35 points or 1.08 per cent to settle at 74,764.23, while the NSE Nifty50 index slumped 203.60 points or 0.86 per cent to close at 23,431.50.

The broader market also ended lower, with Nifty Midcap100 falling 0.51 per cent and Nifty Smallcap declining 0.48 per cent.

Among the major Sensex laggards were HDFC Bank Ltd, Infosys Ltd, Reliance Industries Ltd (RIL), ICICI Bank Ltd, Bharti Airtel Ltd, HCLTechnologies Ltd, Tata Consultancy Services Ltd (TCS), Larsen & Toubro Ltd (L&T) and Bajaj Finance Ltd.

The combined market capitalisation (m-cap) of BSE-listed companies fell to Rs 484.20 lakh crore from Rs 486.21 lakh crore in the previous session, marking a decline of around Rs 2 lakh crore in Wednesday's session. Over the past three sessions, the total m-cap has declined by Rs 4.05 lakh crore.

Ankur Punj, Managing Director at Equirus Wealth, said the market decline came amid renewed concerns over West Asia tensions and crude oil prices moving above $100 a barrel.

"With oil witnessing an upward march in the last few sessions, a sharp depreciation in the rupee against the dollar along with weak global market cues plundered stocks in the IT, auto, select banking and realty sectors," he also said.

Vinod Nair, Head of Research at Geojit Investments, noted that persistent geopolitical uncertainty was making it difficult for major central banks to balance growth and inflation concerns.

"While higher energy costs pose risks to both economic activity and price stability, bond yields and currencies remaining volatile are likely to keep investors cautious. This could limit risk appetite and keep market sentiment subdued," he added.

Nandish Shah, Deputy Vice-President at HDFC Securities, said Nifty remained below key moving averages, keeping its broader structure bearish.

"The next major support is now seen at 23,172. On the upside, immediate resistance has shifted down to 23,600, followed by 23,800," Shah stated.