Sensex, Nifty Close Lower as West Asia Tensions Weigh on Investor Sentiment
Mumbai — Indian equity benchmark indices ended lower after a volatile trading session Thursday as investor sentiment weakened amid rising geopolitical tensions in West Asia following fresh U.S. military action against Iran.
The Nifty closed 53.35 points, or 0.23 percent, lower at 23,161.60, while the Sensex fell 150.63 points, or 0.20 percent, to settle at 73,832.55.
Market experts said the 23,300 to 23,400 range has become an important immediate resistance zone for the Nifty.
“A sustained move above this range would be required to improve sentiment and support a recovery toward the 23,550 region,” an analyst said.
“On the downside, the index is currently hovering near the crucial 23,100 support zone. Holding above this level will be important to prevent further weakness,” a market expert said.
Investors remained cautious after reports that the United States had intensified military action against Iran. U.S. President Donald Trump said Tehran had enough time to negotiate a deal with Washington but failed to do so. He warned that Iran would now face the consequences, adding that the U.S. would strike the country “very hard.”
Concerns deepened after Iran announced the closure of the strategically important Strait of Hormuz following the U.S. military strikes. The move raised fears of disruptions to global oil supplies and added to uncertainty across financial markets.
Among Nifty stocks, Infosys and Eternal were the top laggards, weighing on the benchmark index. Weakness in technology stocks also pulled the broader IT sector lower.
Broader markets saw sharper selling pressure. The Nifty MidCap index ended 0.81 percent lower, while the Nifty SmallCap index declined 0.67 percent.
On the sectoral front, Nifty IT, Nifty Consumer Durables and Nifty Chemicals recorded the steepest losses. Nifty Media, Nifty Private Bank and Nifty Pharma outperformed the broader market and helped limit the overall decline.
Analysts said investors are closely watching developments in West Asia, as further escalation could affect global crude oil prices and risk appetite across equity markets.
After two days of gains, the Indian rupee depreciated because of fresh dollar demand driven by forward maturities and a recovery in the dollar index amid safe-haven flows.
“Technically, a decisive breach above 95.80 could trigger sharp short-covering and aggressive hedging, paving the way toward 96.50. On the downside, 94.70 continues to act as a strong base,” a market expert said. (Source: IANS)
