Indian equity markets experienced a significant decline on Monday due to escalating tensions in West Asia, which led to a global risk-off sentiment and a sell-off in domestic equities. The Sensex dropped by 719.08 points to close at 73,524.26, tracking weakness in global equities and increasing geopolitical uncertainty.
Similarly, the Nifty index fell by 243.70 points to settle at 23,123. Analysts highlighted that the 23,250–23,300 range now serves as the immediate resistance area, with 23,450 being the point of the latest breakdown.
Market experts emphasized that a move above these levels is crucial for market improvement and any substantial recovery. On the downside, 23,100 is seen as the immediate support level, with a potential breakdown below this mark intensifying selling pressure towards the crucial 23,000 level.
The market sentiment was negatively impacted by reports of Iran launching missiles at Israel, raising concerns about regional security and diminishing hopes of immediate peace between Washington and Tehran. This development also raised fears of disruptions in global oil supply, leading to an increase in crude prices.
The broader markets experienced even larger losses, with the Nifty MidCap index declining by 1.66% and the Nifty SmallCap index falling by 2.88%. Selling pressure was widespread across sectors, with Nifty Realty, Nifty Metal, and Nifty Auto indices being the worst performers during the session.
Conversely, the Nifty Healthcare index showed relative strength amid the overall market decline. Experts attributed the sharp drop in domestic equities to global risk-off signals, geopolitical tensions in West Asia, and concerns about rising crude oil prices impacting inflation and corporate margins.
Market experts noted that selling pressure intensified in the afternoon session due to global uncertainties and foreign investor caution, hindering the market from maintaining higher levels.
