Indian equity markets experienced a significant decline on Friday due to escalating tensions in the Middle East, leading to widespread selling across various sectors. The Nifty and Sensex, key benchmark indices, ended the day deep in the red as worries about the prolonged US-Iran conflict heightened concerns about gas supply disruptions and increased energy expenses.
The Nifty plummeted by 488.05 points, or 2.06%, to finish at 23,151.10, while the Sensex saw a drop of 1,470.50 points, or 1.93%, closing at 74,563.92. Analysts noted that 23,100 serves as a crucial immediate support level, while the range of 23,450–23,500 has now become a significant resistance zone.
Amidst the market downturn, only Bharti Airtel and Hindustan Unilever managed to stay in positive territory on the Sensex. Conversely, stocks like L&T, Tata Steel, SBI, Maruti Suzuki India, and Axis Bank were among the top losers. Market volatility surged during the session, with the India VIX, a key market fear indicator, rising sharply by 6.32% before settling 5.23% higher.
Broader markets also reflected the negative trend, with the Nifty Midcap 100 and Nifty Smallcap 100 ending 2.62% and 2.52% lower, respectively. Metal stocks took a significant hit, with the Nifty Metal index plunging around 5%. Additionally, the Nifty PSU Bank and Nifty Media indices underperformed the broader market.
Experts attributed the market’s sharp decline to growing investor apprehension amidst global geopolitical tensions and concerns regarding energy supply disruptions and economic instability. The Indian rupee also weakened, reaching a fresh record low for the second consecutive week, influenced by geopolitical uncertainties.
