Indian equity benchmark indices faced a fourth consecutive session of losses on Thursday due to escalating tensions between the United States and Iran, leading to a surge in crude oil prices. The Sensex dropped by 364 points to close at 76,391.39, while the Nifty fell by 127 points to settle at 23,869.60.
Experts analyzing the Nifty technical outlook highlighted that the 24,000 mark, previously a crucial support level, has now transformed into an immediate resistance point, supported by the highest Call Open Interest at the 24,000 strike. Market experts also noted a stronger resistance near 24,200.
The market witnessed a widespread decline, with sectors like banking, real estate, and oil-related stocks experiencing selling pressure. The Nifty Realty index recorded the most significant drop at 1.81%, followed by the Nifty PSU Bank index at 1% and the Nifty Bank index at 0.94%.
Amid concerns regarding escalating energy costs, the Nifty Chemical and Nifty Oil and Gas indices closed lower. Conversely, the Nifty Auto index outperformed the market, gaining 0.70%, while the Nifty Media index also ended positively.
Top laggards in the session included Nestle India and Shriram Finance among the Nifty pack, while Bajaj Finance, IndiGo, Axis Bank, and Reliance Industries were major losers among the Sensex constituents. On the gaining side, Mahindra & Mahindra, Tata Consultancy Services (TCS), Eternal, HCL Technologies, and Bajaj Finserv stood out as top performers.
Market sentiment remained cautious as investors evaluated the impact of rising geopolitical tensions in the Middle East. The surge in crude oil prices raised concerns about inflation and its potential effects on corporate earnings and the broader economy.
