Domestic equity markets started the week on a downward trend as benchmark indices fell by 1% due to heightened crude oil prices and escalating geopolitical tensions in West Asia. The Sensex dropped by 892 points, or 1.18%, reaching an intraday low of 74,345, while the Nifty declined by 272 points, or 1.15%, to 23,371.
In sector-wise performance, most indices were in the negative territory except for the information technology sector. Various sectors like Nifty Consumer Durables, Realty, Auto, Metal, PSU Bank, Private Bank, FMCG, Cement, and Chemicals witnessed declines ranging from 1-2%.
Notable Nifty stocks such as Power Grid, Tata Steel, Shriram Finance, Maruti Suzuki, and others were trading 1-3% lower, with Nifty IT being the sole sector showing a positive trend, up by 0.6%. The market volatility index, India VIX, surged by nearly 6% to around 20, reflecting the prevailing market uncertainty.
Analysts attributed the market’s cautious outlook to weak global cues, rising geopolitical tensions, and high crude oil prices. They highlighted that Nifty’s immediate support lies around 23,400-23,500, while resistance is anticipated near 23,900-24,000.
Market sentiment remained subdued as oil prices rose following a drone attack on a nuclear facility in the United Arab Emirates, escalating tensions in the Middle East. Additionally, US-Iran conflict concerns intensified after President Donald Trump’s warning, indicating a stalled resolution process.
In the commodities market, Brent crude prices surged by 2.37% to $111.86 per barrel, while US WTI crude traded 3.11% higher at $108.70 per barrel. Asian markets mirrored the negative trend, with Japan’s Nikkei and Hong Kong’s Hang Seng declining by over 1%, while South Korea’s KOSPI saw a 1% gain.
