MUMBAI — Indian stock markets ended sharply lower Friday as escalating tensions in the Middle East triggered broad-based selling and heightened investor caution.
The benchmark Sensex and Nifty indices both closed deep in the red amid concerns that the ongoing U.S.-Iran conflict could disrupt gas supplies and push global energy costs higher.
The Nifty fell 488.05 points, or 2.06%, to settle at 23,151.10, while the Sensex declined 1,470.50 points, or 1.93%, to close at 74,563.92.
“On the downside, 23,100 now acts as an immediate support level and has emerged as a minor intra-day demand zone,” an analyst said.
“On the upside, 23,450–23,500 has now turned into the immediate resistance zone, which also coincides with the earlier breakdown level,” the analyst added.
Only two Sensex constituents — Bharti Airtel and Hindustan Unilever — managed to close in positive territory.
Among the biggest losers were Larsen & Toubro, Tata Steel, State Bank of India, Maruti Suzuki India and Axis Bank.
Market volatility also rose during the trading session. The India VIX, often referred to as the market’s “fear gauge,” jumped as much as 6.32% during the day to 22.88 before settling 5.23% higher at 22.65.
Broader markets mirrored the weakness seen in the benchmarks. The Nifty Midcap 100 index ended 2.62% lower, while the Nifty Smallcap 100 declined 2.52%.
Metal stocks were among the worst hit, with the Nifty Metal index plunging about 5%. The Nifty PSU Bank and Nifty Media indices also underperformed the broader market.
Analysts said the sharp drop across indices reflects growing investor caution amid global geopolitical tensions and uncertainty over the potential impact on energy supplies and economic stability.
Meanwhile, the Indian rupee weakened for the second consecutive week, settling at a record low as geopolitical concerns weighed on the currency.
“Spot USDINR maintains a bullish bias, with immediate resistance anticipated between 92.50–92.70 and a support at 92.05,” an analyst said. (Source: IANS)
