MUMBAI — Indian equity markets closed sharply lower Monday as escalating tensions in West Asia weighed on investor sentiment and raised concerns about global growth, inflation and energy prices.
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 fall below that level could accelerate the decline, while resistance is seen near 24,000.
“Immediate support is placed at 23,700, below which the decline may accelerate further. On the upside, resistance is placed at 24,000, above which sentiment could improve,” an analyst said.
Weak global cues and concerns over prolonged geopolitical tensions pressured markets throughout the session.
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 fell 1.05%, while the Nifty SmallCap index lost 1.13%.
Among sectors, consumer durables were hit hardest, with the Nifty Consumer Durables index falling nearly 4%. Realty, PSU banks and media stocks also saw significant losses as investors grew more cautious over the risk of higher inflation and slower economic activity.
Defensive sectors held up better than the broader market. FMCG, pharmaceutical and healthcare stocks showed relative resilience as investors shifted toward safer bets during the volatility.
Analysts said a prolonged conflict in West Asia could drive crude oil prices higher, add to inflationary pressure and increase uncertainty around the global economic outlook.
“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 weakened Monday, 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)
