Indian stock markets experienced a significant decline on Monday due to escalating tensions between the US and Iran, leading to a negative investor sentiment and widespread selling in various sectors. The benchmark Nifty dropped by 1.24%, or 312.95 points, settling at 24,865.70, while the Sensex fell by 1.29%, or 1,048.34 points, closing at 80,238.85, reaching its lowest level since September 2025.
Although there was a partial recovery from the day’s lows, both indices ended the session in the red. Market experts highlighted that the immediate crucial support for Nifty is positioned at 24,600, emphasizing that a significant breakdown below this level could prompt a more substantial market correction. Conversely, resistance is identified at 25,000.
Market analysts indicated that as long as Nifty maintains levels above 25,000, the market sentiment is expected to favor bearish trends. Notably, only three stocks on the 30-share index, namely BEL, Sun Pharma, and ITC, closed in positive territory, with IndiGo leading the decliners by dropping 6.25%.
In the broader market scenario, the Nifty MidCap index declined by 1.58%, while the Nifty SmallCap index fell by 1.75%. The auto and oil and gas sectors faced significant pressure, with the Nifty Auto index being the worst-performing sector, closing 2.20% lower. Conversely, the Nifty Metal index managed to end 0.24% higher, outperforming other sectoral indices despite the overall market pessimism.
Investor caution was evident in the increased volatility index, with the NSE Nifty India Volatility Index, or India VIX, surging by 25.01% to close at 17.13, indicating heightened market fear. Market participants attributed this nervousness to geopolitical uncertainties, resulting in reduced risk appetite and profit-taking activities across various segments.
