Indian benchmark indices saw a significant decline on Tuesday due to escalating geopolitical tensions in the Middle East. The Nifty closed at 23,913.7, down 0.49%, while the Sensex ended at 76,009.7, dropping 0.63%. Analysts noted that 24,000 has now become a crucial resistance level for the Nifty.
Experts highlighted that 24,100 poses another key hurdle with active Call writing and supply pressure from institutional participants. On the downside, 23,850 acts as immediate support, with the 23,500–23,600 zone being a critical demand area. Trent, TCS, Bajaj Finance, and Bharti Airtel were among the top losers on the Sensex.
Conversely, Adani Ports, Eternal, and Tech Mahindra led the gains on the Sensex. Apollo Hospitals Enterprise, Wipro, and Bharti Airtel were among the top losers in the Nifty index. The Nifty Consumer Durables index emerged as the worst performer, ending over 1% lower.
Despite volatility in frontline indices, the broader markets showed resilience. The Nifty MidCap index closed 0.54% higher, reaching a fresh high during the trading session, while the Nifty SmallCap index gained 0.35%. Metal and chemical stocks outperformed the broader market, with the Nifty Metal and Nifty Chemical indices closing positively.
Market sentiment turned cautious following reports of fresh defensive strikes by the United States in southern Iran. The strikes aimed to protect American troops from Iranian forces, leading to selling pressure across key sectors. The uncertainty in the geopolitical situation triggered caution among investors due to its potential impact on global markets, crude oil prices, and risk sentiment.
