Indian equity markets closed significantly lower on Friday, influenced by a sharp increase in crude oil prices that unsettled investors amidst escalating geopolitical uncertainties related to stalled US-Iran negotiations and disturbances at the Strait of Hormuz.
The Sensex plummeted by 982.71 points, or 1.27 percent, finishing at 76,681.29, while the Nifty fell by 275.10 points, or 1.14 percent, settling at 23,897.95.
Experts analyzing the technical outlook highlighted that 24,000 has now become a robust resistance level, transforming from a support level to a barrier for recovery efforts.
The market decline was primarily driven by a downturn in information technology stocks, with companies like Infosys, Tata Consultancy Services, and Tech Mahindra leading the losses on the Nifty IT index, causing a sector-wide drop of around 5 percent.
The broader markets also reflected this negative trend, with the Nifty MidCap and Nifty SmallCap indices declining by 0.96 percent and 0.87 percent, respectively.
Despite the overall market weakness, the Nifty Metal index demonstrated relative resilience, registering the smallest decline among sectoral indices.
Investor confidence was dampened by a significant surge in global crude oil prices, as Brent crude surpassed $100 per barrel, with the April futures contract trading 2.07 percent higher at $107.25 per barrel.
The spike in oil prices occurred amid ongoing disruptions in energy supplies due to the blockade at the vital global oil transit point, the Strait of Hormuz.
Market experts cautioned that elevated crude prices could be inflationary and might widen India’s current account deficit, potentially impacting economic stability in the short term, leading to cautious market sentiment.
