Sensex Falls 571 Points, Nifty Closes Below 22,450 as Indian Markets Extend Losses
Mumbai — Indian stock markets closed sharply lower for the fourth consecutive trading session amid concerns over rising energy prices, volatile global bond yields and the possibility of further monetary tightening.
The benchmark Sensex dropped 570.59 points, or 0.79%, to close at 71,909.70, while the Nifty declined 198.50 points, or 0.88%, to settle at 22,421.95.
Broad-based selling weighed on the markets as investors remained cautious about rising inflationary pressures and uncertainty surrounding the global interest rate outlook.
Market analysts noted that the Nifty had fallen below its weekly 200-day simple moving average zone of 22,580–22,600 and approached a key support level of 22,400.
“A failure to defend 22,400 could extend weakness towards 22,200–22,000, while 22,600–22,800 has now become the immediate resistance band,” market analysts said.
Among Nifty stocks, Bajaj Auto, Maruti Suzuki India and Shriram Finance recorded some of the steepest declines, reflecting weakness in automobile and financial stocks.
The broader markets also faced significant selling pressure, with the Nifty MidCap 100 index falling 1.01% and the Nifty Smallcap 100 index declining 0.97%.
Sectoral performance remained largely negative. Automobile, media, metal and fast-moving consumer goods stocks were among the hardest hit, with the Nifty Auto, Nifty Media, Nifty Metal and Nifty FMCG indices recording substantial losses.
Information technology stocks provided some support, with the Nifty IT index emerging as the session’s strongest-performing sector.
Analysts said persistent volatility in energy prices and global bond markets could continue to influence investor sentiment in the near term.
“Long-term investors may stay invested and use market weakness to accumulate gradually, while short-term investors could adopt a wait-and-watch approach until stronger measures from international institutions & the govt help restore stability in global financial markets,” analysts noted. (Source: IANS)
