Sensex, Nifty Fall as Middle East Tensions Weigh on Markets
NEW DELHI — Indian benchmark indices closed sharply lower Tuesday as escalating tensions in the Middle East dampened investor sentiment following reports of fresh U.S. strikes in southern Iran.
The Nifty ended at 23,913.7, down 118 points, or 0.49%, while the Sensex closed at 76,009.7, falling 479.26 points, or 0.63%.
Analysts said 24,000 has become the immediate resistance level for the Nifty after a reversal from support to resistance.
“Above this, 24,100 remains another key hurdle where higher Open Interest (OI) build-up is visible, indicating active Call writing and supply pressure from institutional participants,” an analyst said.
On the downside, analysts said 23,850 is the immediate support level for the index. A fall below that would bring the broader 23,500-to-23,600 range into focus as a key demand zone supported by significant put open interest.
“On the downside, 23,850 acts as the immediate support level for the index. Below this, the broader 23,500–23,600 zone continues to remain a critical demand area backed by significant Put OI concentration,” the analyst said.
Trent, TCS, Bajaj Finance and Bharti Airtel were among the top losers on the Sensex, while Adani Ports, Eternal and Tech Mahindra led the gainers.
On the Nifty, Apollo Hospitals Enterprise, Wipro and Bharti Airtel were among the biggest decliners.
Among sectors, the Nifty Consumer Durables index was the worst performer, ending more than 1% lower. The Nifty Financial Services and Nifty Private Bank indices also declined as banking and financial stocks came under pressure.
Broader markets were more resilient despite volatility in the main indices. The Nifty MidCap index ended 0.54% higher after touching a fresh high during the session, while the Nifty SmallCap index rose 0.35%.
Metal and chemical stocks outperformed the broader market, with the Nifty Metal and Nifty Chemical indices closing in positive territory and helping limit losses in the broader market.
Market sentiment weakened after reports said the United States carried out fresh defensive strikes in southern Iran on Tuesday morning despite ongoing negotiations. Reports citing U.S. Central Command said the strikes were aimed at protecting American troops from Iranian forces.
The uncertainty triggered selling across key sectors, particularly consumer durables and financial stocks. Analysts said investors remained cautious because of geopolitical uncertainty and its potential impact on global markets, crude oil prices and risk sentiment. (Source: IANS)
