Mumbai — Indian equity markets extended losses for a third straight session Wednesday as escalating U.S.-Iran tensions pushed Brent crude prices to the key $100-per-barrel level, fueling concerns over inflation and the broader economic outlook.
The benchmark Sensex dropped 813.35 points, or 1.08%, to close at 74,764.23, while the Nifty fell 203.60 points, or 0.86%, to settle at 23,431.50.
Market experts said the 23,550-23,600 range now represents the Nifty’s immediate resistance zone.
“A sustained move above 23,600 would be required to improve and trigger a recovery towards 23,700–23,800,” market watchers said.
“On the downside, the 23,400 zone now acts as the immediate support area,” analysts added.
Information technology stocks led the sell-off, with Infosys, HCL Technologies and Tech Mahindra among the biggest losers on the Nifty. The steep decline in IT shares weighed heavily on the benchmark indices amid broader risk aversion.
The broader market also remained under pressure, with the Nifty MidCap index falling 0.51% and the Nifty SmallCap index ending 0.48% lower.
Among sectors, the Nifty IT index was the worst performer, declining more than 3% by the close. The Nifty Realty index also underperformed amid weak market sentiment.
The Nifty Metal index, meanwhile, was a relative outperformer and helped limit some of the broader market weakness.
Experts said sentiment remained cautious as the sharp rise in crude oil prices raised concerns about higher input costs, inflationary pressures and the potential impact on India’s import bill.
“Today’s market sell-off reflects a combination of rising geopolitical risks, crude oil nearing the $100/barrel mark, rupee weakness and renewed FII selling,” analysts said.
“Going ahead, volatility is likely to remain elevated until there is clarity on the Middle East situation and crude prices,” market watchers added. (Source: IANS)
