Indian stock markets faced a significant decline on Monday due to escalating geopolitical tensions related to the US-Iran conflict, impacting investor confidence. The Nifty concluded at 24,028.05, marking a decrease of 1.73%, while the Sensex finished at 77,566.16, down by 1.71%. Both indices entered a technical correction phase, dropping over 10% from their recent highs. Despite the downturn, there was a partial recovery as oil prices stabilized during the trading session.
The Nifty rebounded by approximately 160 points from its lowest point of 23,868.05, and the Sensex also recovered nearly 1,142 points from its intraday low of 76,424.55. Analysts highlighted that the Nifty’s immediate support lies around 23,700–23,600, with a potential further decline towards the 23,400–23,300 range upon breaching this level. They also noted resistance levels at 24,300 and 24,600 for a substantial recovery signal.
Market participants remained cautious amidst the uncertainty stemming from the US-Iran conflict, leading to increased market volatility and energy price fluctuations. During the session, broader markets underperformed compared to the benchmark indices, with the Nifty MidCap Index dropping by 1.97% and the Nifty SmallCap Index by 2.22%. Notably, the Nifty PSU Bank Index experienced the most significant decline at 3.97%, driven by heightened selling pressure in public sector banking stocks.
Conversely, the Nifty IT Index exhibited relative resilience, closing slightly higher with a 0.08% gain at 30,162.05. Analysts emphasized that market movements will likely remain sensitive to geopolitical events and oil price fluctuations, influencing investor sentiment in the short term.
