Indian stock market indices Nifty and Sensex closed lower due to escalating tensions between the United States and Iran, leading to a surge in crude oil prices. The Nifty dropped by 180.10 points to 23,997.55, while the Sensex fell by 582.86 points to 76,913.50. Analysts noted key resistance and support levels for the Nifty amid the market downturn.
The spike in oil prices, fueled by US-Iran tensions, caused global market caution, with Brent crude prices rising sharply. Concerns over supply disruptions and inflationary pressures impacted investor sentiment negatively. Stocks like Tata Motors Passenger Vehicles, Eternal, and Hindalco Industries were among the top losers on the Nifty index.
The broader market also witnessed weakness, with the Nifty MidCap index down by 0.98% and the Nifty SmallCap index slipping by 0.48%. While defensive sectors like Nifty IT and Nifty Pharma outperformed, cyclical sectors faced selling pressure. Sectors such as Nifty Metal and Nifty Construction Durable were particularly affected by rising input costs and global uncertainties.
Market analysts attributed the weak market closure to geopolitical tensions and oil price spikes, overshadowing the resilience shown by IT and pharma stocks. The Indian Rupee faced pressure, weakening towards 95.20 against the dollar, as soaring crude prices raised concerns about India’s import bill outlook. Analysts anticipated continued volatility, with support around 95.45 and resistance near 94.60 in the near term.
