Indian Markets Drop Nearly 2% as U.S.-Iran Conflict Weighs on Investor Sentiment
MUMBAI, India — Indian stock markets closed sharply lower Monday as escalating geopolitical tensions linked to the ongoing conflict between the United States and Iran rattled investor confidence, though indices recovered slightly from the day’s lows as crude oil prices eased.
The benchmark Nifty 50 index ended the session at 24,028.05, down 422.40 points, or 1.73 percent. The decline pushed the index into a technical correction after it fell more than 10 percent from its record high of 26,373 reached on Jan. 5.
The BSE Sensex also posted steep losses, closing at 77,566.16, down 1,352.74 points, or 1.71 percent.
Despite the sharp drop, both indices trimmed some losses later in the session as oil prices softened. The Nifty recovered roughly 160 points from its intraday low of 23,868.05, while the Sensex rebounded nearly 1,142 points from its low of 76,424.55.
Market analysts said technical indicators suggest the Nifty faces immediate support between 23,700 and 23,600, with a break below that range potentially extending the decline toward the 23,400–23,300 zone.
“On the upside, immediate resistance is seen around 24,300 (gap area), followed by a stronger hurdle near 24,600, which needs to be reclaimed to signal any meaningful recovery,” an analyst said.
Investors remained cautious amid uncertainty surrounding the U.S.-Iran conflict, which has increased volatility in global markets and driven sharp swings in energy prices.
Broader market indices performed worse than the benchmark indices during the session. The Nifty MidCap index fell 1.97 percent, while the Nifty SmallCap index declined 2.22 percent.
Among sectoral indices, the Nifty PSU Bank index was the worst performer, dropping 3.97 percent as selling pressure intensified in public sector banking stocks.
The Nifty IT index, however, showed relative resilience and ended slightly higher, rising 0.08 percent to close at 30,162.05.
Analysts said markets are likely to remain sensitive to geopolitical developments and fluctuations in crude oil prices, both of which could continue to influence investor sentiment in the coming days. (Source: IANS)
