Sensex, Nifty Close Fiscal Year Lower as Middle East Tensions Spark Sell-Off
MUMBAI — Indian stock markets ended the final trading session of fiscal year 2026 with sharp losses on Monday, as escalating tensions in the Middle East triggered a broad sell-off across equities and weighed heavily on investor sentiment.
The benchmark Nifty fell 488.20 points, or 2.14 percent, to close at 22,331.40, while the Sensex dropped 1,635.67 points, or 2.22 percent, to settle at 71,947.55.
Market participants pointed to rising geopolitical uncertainty and concerns over inflation as key drivers behind the decline, with the ongoing conflict in West Asia raising fears of higher energy prices and slower global growth.
From a technical perspective, analysts said the Nifty’s close below the 22,500 support level is significant and suggests the broader downtrend may continue.
“On the upside, the 22,500–22,600 zone now acts as immediate resistance, where the index has faced repeated selling pressure,” one analyst said.
Financial stocks led the losses, with Bajaj Finance, Shriram Finance, and State Bank of India among the biggest decliners on the Nifty.
Within the Sensex, Tech Mahindra and Power Grid were the only stocks to finish in positive territory. Most other major shares — including Bajaj Finance, IndiGo, Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank — ended lower.
The weakness extended beyond large-cap stocks, with broader markets also under pressure. The Nifty MidCap index fell 2.68 percent, while the Nifty SmallCap index declined 2.66 percent.
Sectoral indices reflected the trend, with banking and financial stocks taking the hardest hit. The Nifty PSU Bank, Nifty Bank, and Nifty Financial Services indices were among the worst performers of the day.
Metal and oil and gas stocks showed relatively smaller declines, offering limited support to the broader market.
Analysts said escalating geopolitical risks — including expanded Iranian strikes, reports of Houthi involvement, and increased U.S. military presence in the region — have pushed investors toward a risk-off stance.
“The widening of Iranian strikes, reports of Houthis entering the conflict, and a visible U.S. troop buildup in the region collectively raised escalation fears, with no credible pathway to easing energy prices pushing investors firmly into risk-off territory,” a market expert said.
The sharp downturn capped a turbulent end to the fiscal year, underscoring the impact of global uncertainty on domestic markets. (Source: IANS)
