Indian equity benchmarks closed lower on Tuesday due to escalating geopolitical tensions in West Asia, affecting investor confidence and leading to declines in banking, realty, and oil and gas stocks. The Nifty fell by 0.36% to 24,032.80 points, while the Sensex dropped by 0.33% to 77,017.79 points. Selling pressure intensified during the day, reversing gains from the previous session.
Banking, real estate, and oil and gas sectors were the major losers, reflecting worries about global growth and uncertainties in energy markets. On the other hand, auto and FMCG stocks demonstrated resilience, offering some support to the overall market. The Nifty MidCap index closed 0.17% higher, while the Nifty SmallCap index gained 0.28%, showing a mixed trend in the broader indices.
Market sentiment remained cautious amidst the rising tensions in West Asia, with reports of the US and Iran exchanging fire near the Strait of Hormuz, disrupting a month-long ceasefire. This conflict has sparked concerns about prolonged instability in the region, which plays a crucial role in global oil supplies. Analysts suggest that market direction will be influenced by geopolitical developments and upcoming earnings reports.
The Rupee weakened further, dropping below 95.25 to trade near 95.30 against the dollar, impacted by crude prices exceeding $100. Analysts predict that 94.70 will act as a resistance level in the near term, while 95.50 is seen as immediate support. Market watchers are closely monitoring US non-farm payrolls and unemployment data for future market direction.
