Indian equity benchmark indices closed lower on Thursday due to escalating geopolitical tensions in West Asia following fresh US military action against Iran. The Nifty ended 0.23% lower at 23,161.60, while the Sensex declined by 0.20% to settle at 73,832.55. Market experts highlighted the 23,300-23,400 zone as a crucial resistance area for the Nifty.
Investor sentiment weakened as the US intensified its military offensive against Iran, leading to concerns about global oil supplies. US President Donald Trump warned of severe consequences for Iran, causing uncertainty in financial markets. The closure of the Strait of Hormuz by Iran further added to fears of disruptions in oil supplies.
Among Nifty constituents, Infosys and Eternal were the top laggards, impacting the benchmark index. The broader IT sector also faced downward pressure. The Nifty MidCap index ended 0.81% lower, while the Nifty SmallCap index declined by 0.67%. Sector-wise, Nifty IT, Nifty Consumer Durable, and Nifty Chemical indices recorded significant losses.
Analysts emphasized monitoring West Asia developments for potential impacts on global crude oil prices and equity market sentiment. The Indian Rupee depreciated after two days of gains due to increased dollar demand and a recovery in the dollar index. Market experts noted key technical levels for the dollar index, expecting sharp movements based on breach points.
