Mumbai–Indian stocks closed sharply lower Tuesday as escalating geopolitical tensions in West Asia sparked broad-based selling, led by public-sector banks, real estate and automobile shares.
The Sensex fell 561.46 points, or 0.72%, to close at 77,054.94. The Nifty declined 159 points, or 0.66%, to settle at 24,052.05.
The Nifty remained largely range-bound after opening lower as weekly options contracts on the National Stock Exchange expired. The index found support near the previous session’s low and continued to trade above a falling trendline.
“In the short term, the outlook is likely to remain positive as long as the index stays above 23,950. On the higher side, it may advance towards the 24,250–24,300 zone,” an analyst said.
“However, a decisive fall below 23,950 could weaken the current bullish setup and trigger a phase of consolidation,” the analyst added.
Investor sentiment remained cautious as concerns over developments in West Asia prompted profit-taking across major sectors, despite gains in some defensive stocks.
HCLTech, Shriram Finance and HDFC Life Insurance Company were among the biggest decliners on the Nifty and weighed on the benchmark index.
The broader market also finished lower. The Nifty MidCap index declined 0.44%, while the Nifty SmallCap index dropped 1.01%.
Most sectoral indexes closed in negative territory, with real estate, public-sector banks and automobile stocks recording the steepest losses. The Nifty Pharma index bucked the broader trend and emerged as the top sectoral gainer as investors moved toward defensive shares.
“Looking ahead, all eyes are now on the US Fed Chair, whose upcoming remarks could set the tone for global rate expectations. Meanwhile, the Q1 earnings season rolls on a positive note but rapid increase in geopolitical risk has dampened the sentiment,” the market expert said. (Source: IANS)
