Indian benchmark equity indices experienced a significant decline on Monday due to growing worries about the impact of the West Asia conflict on global growth and inflation. The Nifty closed 1.49% lower at 23,815.85, while the Sensex ended down by 1.70% at 76,015.28. Analysts noted that the Nifty’s short-term outlook appears fragile, with immediate support at 23,700 and resistance at 24,000.
Market sentiment was negatively influenced by weak global cues and concerns about prolonged geopolitical tensions. Major laggards on the Nifty index included Titan Company, InterGlobe Aviation, and State Bank of India. Conversely, Coal India, Adani Ports, and Hindustan Unilever were among the top gainers.
The broader markets also faced pressure, with the Nifty MidCap index dropping by 1.05% and the Nifty SmallCap index by 1.13%. Various sectors saw declines, with the Nifty Consumer Durables index being the worst performer, plunging nearly 4%.
While some defensive sectors like Nifty FMCG, Nifty Pharma, and Nifty Healthcare showed resilience, investors remained cautious due to fears of higher inflation and economic slowdown. Analysts warned that prolonged tensions in the region could lead to increased crude oil prices, inflationary pressures, and uncertainty in the global economic outlook, keeping investors on edge.
The Indian rupee also weakened, closing at a record low level as geopolitical volatility escalated. Analysts highlighted technical levels for the USDINR pair, indicating resistance at 95.45 and 95.80, with support at 94.70.
