MUMBAI, India — Indian stocks fell sharply Tuesday, extending losses for a second straight session as rising tensions in West Asia, higher crude oil prices and worries about the broader economic impact triggered a broad market selloff.
The Sensex plunged 1,456.04 points, or 1.92%, to close at 74,559.24. The Nifty fell 436.3 points, or 1.83%, to end at 23,379.55.
Market analysts said 23,300 is now the immediate support level for the Nifty, followed by 23,100, where significant Put open interest is concentrated.
“Further below, the 23,000 psychological mark remains a critical support zone where strong buying demand had previously emerged,” an analyst said.
“On the upside, 23,500 has now turned into an immediate resistance after the breakdown, followed by 23,800 where high Call OI concentration and supply pressure continue to remain strong,” an analyst said.
On the 30-stock Sensex, State Bank of India was the only component to close higher. All other index stocks ended in the red.
Tech Mahindra, HCL Tech, Titan and Tata Consultancy Services were among the biggest losers, falling as much as 4.44%.
Investor sentiment weakened after Prime Minister Narendra Modi urged citizens to cut energy consumption, reduce foreign travel and limit gold purchases amid geopolitical uncertainty and pressure from elevated crude oil prices.
The remarks added to concerns that the West Asia conflict could have a wider economic impact on India.
Broader markets saw even steeper losses. The Nifty MidCap index dropped 2.54%, while the Nifty SmallCap index fell 3.17%.
Among sectors, information technology and real estate stocks posted the sharpest declines. The Nifty IT and Nifty Realty indices were among the top laggards, while consumer durables and media shares also came under pressure.
Metal and oil and gas stocks outperformed the broader market as higher commodity prices helped support sentiment in those sectors.
Analysts said volatility in oil prices and uncertainty over the geopolitical situation are likely to keep Indian markets under pressure in the near term, particularly because of India’s dependence on crude imports.
“Near-term market sentiment is likely to stay volatile due to crude and currency concerns, though any signs of geopolitical easing could support relief rallies, aided by resilient domestic fundamentals and stable institutional flows,” an analyst said. (Source: IANS)
