Indian equities started the week on a downward trend as benchmark indices Sensex and Nifty dropped by 1% each due to escalating tensions in West Asia, increasing crude oil prices, and weak global cues. The Sensex opened at 73,421.61, down over 800 points, while the Nifty began at 23,080.70, declining by 286 points.
Selling pressure was observed in sectors like realty, metal, auto, and information technology, with realty stocks falling nearly 2% and metal, auto, and IT indices losing over 1% each. Major laggards among Nifty constituents included Wipro, TCS, Hindalco Industries, Tata Steel, JSW Steel, Bajaj Finance, and Shriram Finance.
The broader market indices, including Nifty Midcap 100, Midcap 150, and Smallcap, also faced pressure, declining close to 1% each. Market volatility surged sharply, with India VIX rising nearly 15% to around 18, indicating increased uncertainty.
Analysts noted a weak technical structure, with Nifty trading below key moving averages and showing a lower high-lower low formation, signaling ongoing selling pressure. Immediate support is anticipated around the 23,100-23,000 zone, while resistance is clustered near the 23,500-23,700 range.
Investor sentiment was fragile due to geopolitical tensions in West Asia, with concerns over potential disruptions in crude supplies following Israeli strikes on Lebanon and reported explosions in Iranian cities. However, US President Donald Trump expressed optimism about a resolution and urged Israeli leadership to avoid further escalation.
Crude oil prices rose, with Brent crude increasing by 4% to $96.90 and US WTI gaining 4.64% to $94.75. Asian markets mirrored the negative trend, with Japan’s Nikkei falling by nearly 4%, South Korea’s KOSPI plunging by 5%, and Hong Kong’s Hang Seng declining by about 1%.
