MUMBAI — Indian benchmark indices closed lower Monday as escalating tensions involving Iran and the Strait of Hormuz weighed on investor sentiment ahead of new U.S. sanctions against Tehran.
The Sensex fell 171.72 points, or 0.22%, to close at 77,369.11, while the Nifty declined 32.95 points, or 0.14%, to 24,219.05.
Market sentiment weakened after Iran threatened to seize vessels and change transit rules for the Strait of Hormuz, a critical route for global energy shipments.
Analysts said the 24,300 level remains a key resistance area for the Nifty. A sustained move above that level could open the way toward 24,400 to 24,500, while 24,145 remains the immediate support level.
Selling pressure was seen in several heavyweight stocks, with SBI Life Insurance and Bajaj Finance among the major Nifty losers.
Broader markets were mixed. The Nifty MidCap index rose 0.13%, while the Nifty SmallCap index declined 0.26%.
Among sectoral indices, the Nifty PSU Bank index posted the sharpest decline, while the Nifty Metal index outperformed and helped limit broader market losses.
Analysts said investors remained cautious about the potential for disruptions to global trade and energy supplies if tensions around the Strait of Hormuz escalate further.
Indian equities also tracked weakness in other Asian markets, with large-cap stocks underperforming the broader market.
Analysts expect volatility to remain elevated Tuesday as investors assess new U.S. sanctions measures against Iran and any response from Tehran. (Source: IANS)
