Sensex, Nifty Close Lower as West Asia Tensions Weigh on Markets
MUMBAI, India — Indian stock benchmarks ended lower Tuesday as rising geopolitical tensions in West Asia weighed on investor sentiment and dragged down banking, real estate and oil and gas shares.
The Nifty fell 86.50 points, or 0.36 percent, to close at 24,032.80. The Sensex dropped 251.61 points, or 0.33 percent, to settle at 77,017.79.
The two benchmarks erased gains from the previous session as selling pressure intensified during the day.
Banking, real estate and oil and gas stocks were among the biggest laggards, reflecting investor concerns over global growth, energy-market uncertainty and the potential impact of higher crude prices.
Auto and FMCG stocks showed relative strength, helping limit losses in the broader market.
Broader indices ended mixed. The Nifty MidCap index rose 0.17 percent, while the Nifty SmallCap index gained 0.28 percent.
Market sentiment remained cautious amid renewed tensions in West Asia. Reports of an exchange of fire between the United States and Iran near the Strait of Hormuz raised concerns about prolonged instability in a region critical to global oil supplies.
“Going ahead, market direction is likely to stay sensitive to geopolitical developments and incremental cues from upcoming earnings,” a market expert said.
The rupee also extended its decline, slipping below 95.25 and trading near 95.30 as crude prices above $100 continued to pressure the currency.
“In the near term, 94.70 is likely to act as resistance, while 95.50 is seen as immediate support, with markets closely tracking US non-farm payrolls and unemployment data this week for further direction,” an analyst said. (Source: IANS)
