Indian benchmark equity indices experienced a significant drop, marking the steepest single-day decline in over three months on Wednesday. The Sensex fell by 1,677.12 points to close at 76,503.60, while the Nifty decreased by 516.65 points to settle at 23,882.05. Analysts noted that the 24,000 region is now seen as a key resistance level for the Nifty, with further resistance at 24,200.
The market expert highlighted that a sustained move above these levels is necessary to enhance the near-term technical outlook. Conversely, the 23,800 zone is crucial as a support level, and a decisive breach below this range could escalate selling pressure, potentially pushing the index towards the 23,600–23,500 zone. The decline was triggered by weakened risk appetite due to escalating geopolitical tensions in West Asia.
Investor apprehensions grew following US President Donald Trump’s statement declaring the end of the ceasefire with Iran, although negotiations could persist after recent exchanges of strikes in the Strait of Hormuz. This uncertainty led investors to reduce their exposure to equities, resulting in widespread losses across the market. Notably, Jio Financial Services, InterGlobe Aviation, and Shriram Finance were among the major losers in the Nifty index.
The market observed a broad-based decline across sectors, with banking stocks particularly affected by the selling pressure. The Nifty PSU Bank and Nifty Bank indices were the weakest performers during the session. Despite closing lower, the Nifty Metal and Nifty Pharma indices displayed relatively better performance compared to other sectors, mitigating their losses in the market turmoil.
