Domestic equity markets closed lower for the third consecutive trading session due to selling pressure in realty and PSU banking stocks, alongside increasing crude oil prices amidst tensions in West Asia. The Sensex dropped by 715.06 points to 76,755.05, while the Nifty fell by 191.45 points to 23,996.25, slipping below the crucial 24,000 level.
Experts noted that the 24,200 level has become a significant resistance for the Nifty in upcoming sessions. They emphasized the importance of a sustained move above this level to revive bullish momentum and enhance the near-term technical outlook. Conversely, a decisive break below the psychological 24,000 mark could lead to fresh selling pressure, pushing the index towards the 23,900–23,800 support zone.
Market participants remained cautious as geopolitical tensions in West Asia pushed crude oil prices higher, sparking concerns about inflationary pressures and their potential impact on the domestic economy. Notably, InterGlobe Aviation, Dr. Reddy’s Laboratories, and Jio Financial Services were among the top losers in the Nifty constituents.
The broader markets also witnessed significant weakness, with the Nifty MidCap index closing 1.09% lower and the Nifty SmallCap index dropping 1.54%. Realty stocks led the decline sectorally, with the Nifty Realty index falling by 2.6%. Additionally, the Nifty Media index and information technology, pharmaceutical, and private banking stocks experienced losses of around 1% each.
Despite some companies reporting strong results, investor focus remained on the macroeconomic landscape, with concerns over higher crude oil prices and potential U.S. tariffs on pharmaceutical imports affecting market sentiment, according to analysts.
