Sensex, Nifty Fall for Fourth Consecutive Session as Geopolitical Tensions Rattle Indian Markets
MUMBAI — Indian stock markets closed lower for the fourth consecutive trading session Friday as escalating geopolitical tensions unsettled investors and triggered widespread selling, particularly in mid-cap and small-cap stocks.
The benchmark BSE Sensex declined 125.56 points, or 0.17%, to close at 73,123.83, while the NSE Nifty 50 fell 87.65 points, or 0.39%, to settle at 22,600.00.
Investor sentiment remained cautious throughout the trading session as concerns over geopolitical developments prompted market participants to reduce their exposure to riskier assets.
Although the benchmark indices registered relatively modest declines, losses were considerably steeper in the broader market.
The Nifty MidCap 100 index dropped 2.21%, while the Nifty SmallCap 100 plunged 2.94%, reflecting heightened selling pressure beyond India’s largest publicly traded companies.
Among Nifty 50 constituents, Shriram Finance and JSW Steel were among the biggest losers. Weakness in financial and metal stocks added to the pressure on the benchmark index.
Sectoral performance was largely negative, with metal, real estate and public sector banking stocks suffering some of the sharpest losses.
The Nifty Metal, Nifty Realty and Nifty PSU Bank indices ranked among the day’s worst-performing sectoral benchmarks as investors reduced holdings in sectors considered particularly sensitive to economic uncertainty.
Information technology stocks showed comparatively greater resilience. The Nifty IT index recorded the smallest losses among major sectoral indices, providing some support to the broader market.
Market analysts said the Nifty’s recovery from its intraday low suggested that buyers were emerging around the 22,400-22,500 range. However, they cautioned that the index remained vulnerable to further declines.
“Holding 22,500 could trigger a mean-reversion rebound toward 22,800–22,900, but a break below it may expose 22,300 and 22,200. Only a sustained close above 22,900 would indicate that the current decline is beginning to stabilise,” analysts stated.
The Nifty’s closing level of 22,600 was seen as technically fragile, with investors closely monitoring whether the index could maintain support above 22,500 in upcoming sessions.
Analysts attributed the broader market weakness to growing uncertainty over geopolitical conditions, which overshadowed company-specific developments and discouraged investors from taking new positions.
The sustained decline has also shifted attention toward upcoming economic indicators and monetary policy decisions that could influence the direction of Indian equities.
Inflation trends and the policies adopted by major central banks are expected to play a significant role in determining market sentiment, particularly as policymakers attempt to balance price stability with economic growth.
“Going forward, inflation trends and the response of major central banks in balancing inflation and growth will be critical to market direction. In this environment, we expect stock- and sector-specific opportunities to dominate, with earnings visibility and valuation comfort emerging as the key differentiators,” analysts noted.
With Indian equities extending their losing streak, investors are expected to remain selective, favoring companies with stronger earnings prospects and more attractive valuations while monitoring global developments for signs of improving market stability. (Source: IANS)
