Sensex, Nifty Fall Nearly 2% as Middle East Tensions Weigh on Markets
MUMBAI — Indian stock markets closed sharply lower Friday as escalating tensions in the Middle East dampened investor sentiment and triggered widespread selling across sectors.
Benchmark indices Sensex and Nifty both ended the session deep in negative territory amid growing concerns that a prolonged U.S.-Iran conflict could disrupt gas supplies and push energy costs higher.
The Nifty fell 488.05 points, or 2.06%, to close at 23,151.10. The Sensex dropped 1,470.50 points, or 1.93%, ending the day at 74,563.92.
“On the downside, 23,100 now acts as an immediate support level and has emerged as a minor intra-day demand zone,” an analyst said.
“On the upside, 23,450–23,500 has now turned into the immediate resistance zone, which also coincides with the earlier breakdown level,” the analyst added.
Only two Sensex stocks — Bharti Airtel and Hindustan Unilever — managed to finish the session in positive territory.
Among the biggest losers were Larsen & Toubro, Tata Steel, State Bank of India, Maruti Suzuki India and Axis Bank.
Market volatility also rose during the trading session. The India VIX, often referred to as the market’s “fear gauge,” jumped as much as 6.32% during the day to 22.88 before settling 5.23% higher at 22.65.
Broader markets mirrored the weakness in the benchmark indices. The Nifty Midcap 100 index ended 2.62% lower, while the Nifty Smallcap 100 declined 2.52% by the close.
Metal stocks were among the worst hit, with the Nifty Metal index plunging about 5%. The Nifty PSU Bank and Nifty Media indices also underperformed the broader market.
Analysts said the sharp drop across indices reflected increasing investor caution amid global geopolitical tensions and concerns about the potential impact on energy supplies and economic stability.
Meanwhile, the Indian rupee weakened for a second consecutive week, settling at a new record low as geopolitical uncertainty weighed on the currency.
“Spot USDINR maintains a bullish bias, with immediate resistance anticipated between 92.50–92.70 and a support at 92.05,” an analyst said. (Source: IANS)
