Sensex Falls More Than 1,300 Points as Middle East Tensions Hit Markets
MUMBAI, India — Indian benchmark equity indexes closed sharply lower Monday as investors grew increasingly cautious over the potential impact of rising Middle East tensions on global growth, crude oil prices and inflation.
The Nifty fell 360.3 points, or 1.49%, to close at 23,815.85. The Sensex dropped 1,312.91 points, or 1.70%, to end at 76,015.28.
Analysts said the Nifty appeared vulnerable in the near term, with immediate support around 23,700. A move below that level could deepen the decline, while resistance is seen near 24,000.
“Weak global cues and fears of prolonged geopolitical tensions weighed on market sentiment throughout the session,” analysts said.
Titan Company, InterGlobe Aviation and State Bank of India were among the major Nifty laggards. Coal India, Adani Ports and Hindustan Unilever were among the top gainers.
Broader markets also declined. The Nifty MidCap index ended 1.05% lower, while the Nifty SmallCap index fell 1.13%.
Sectoral performance was broadly weak, with the Nifty Consumer Durables index emerging as the worst performer after dropping nearly 4%. Nifty Realty, Nifty PSU Bank and Nifty Media also saw steep losses as investors reacted to concerns over inflation and slowing economic activity.
Defensive sectors showed relative strength during the selloff. Nifty FMCG, Nifty Pharma and Nifty Healthcare performed better than the broader market as investors shifted toward safer areas.
Analysts said extended tensions in the Middle East could push crude oil prices higher, add to inflationary pressures and cloud the global economic outlook, keeping markets cautious in the near term.
“Rising uncertainty surrounding crude oil prices and fears of further geopolitical escalation triggered aggressive unwinding of positions, dragging indices lower into the close,” an analyst said.
The Indian rupee also started the week on a weak note, closing at a record low as geopolitical volatility intensified.
“From a technical standpoint, the USDINR pair has resistance at 95.45 and 95.80, while support shifted to 94.70,” an analyst said. (Source: IANS)
