Sensex Plunges 1,456 Points as West Asia Tensions Spark Broad Market Selloff
MUMBAI — Indian stock markets fell sharply Tuesday, extending losses for a second straight session as rising tensions in West Asia, higher crude oil prices and worries over the potential economic impact triggered a broad selloff.
The Sensex dropped 1,456.04 points, or 1.92%, to close at 74,559.24. The Nifty fell 436.3 points, or 1.83%, to settle at 23,379.55, slipping below the 23,400 mark.
Market analysts said 23,300 is now the Nifty’s immediate support level, followed by 23,100, where significant Put open interest is concentrated.
“Further below, the 23,000 psychological mark remains a critical support zone where strong buying demand had previously emerged,” an analyst said.
On the upside, analysts said 23,500 has become the immediate resistance level after the breakdown, followed by 23,800, where high Call open interest and supply pressure remain strong.
“On the upside, 23,500 has now turned into an immediate resistance after the breakdown, followed by 23,800 where high Call OI concentration and supply pressure continue to remain strong,” an analyst said.
On the 30-share Sensex, State Bank of India was the only stock to close higher. All other constituents ended the session in negative territory.
Tech Mahindra, HCLTech, Titan and Tata Consultancy Services were among the biggest losers, falling as much as 4.44%.
Investor sentiment weakened after Prime Minister Narendra Modi urged citizens to reduce energy consumption, foreign travel and gold purchases amid rising geopolitical uncertainty and pressure from elevated crude oil prices.
The comments heightened concerns that the ongoing conflict in West Asia could have a broader economic impact on India.
Losses were sharper in the broader market. The Nifty MidCap index fell 2.54%, while the Nifty SmallCap index dropped 3.17%.
Among sectors, information technology and real estate stocks saw the steepest declines. The Nifty IT and Nifty Realty indices were the top laggards, while consumer durable and media shares also remained under pressure.
Metal and oil and gas stocks outperformed the broader market, supported by higher commodity prices.
Analysts said volatility in oil prices and uncertainty over the geopolitical situation are likely to keep markets under pressure in the near term, particularly because India depends heavily on crude imports.
“Near-term market sentiment is likely to stay volatile due to crude and currency concerns, though any signs of geopolitical easing could support relief rallies, aided by resilient domestic fundamentals and stable institutional flows,” an analyst said. (Source: IANS)
