Indian stock markets experienced a third consecutive decline on Wednesday due to escalating tensions in the Middle East, particularly involving the United States and Iran. This uncertainty led to cautious investor behavior and widespread selling across various sectors. The Nifty closed 1.6% lower, dropping 385.2 points to end at 24,480.5.
The Sensex also saw significant selling pressure, falling by 1,122.66 points or 1.40% to settle at 79,116.19. Market experts pointed out that immediate support levels are around 24,300–24,200, with a potential further decline towards the psychological level of 24,000 if this range is decisively breached.
Analysts highlighted that the immediate resistance for the market stands at 24,600, with a stronger supply zone near 24,900–25,000 that needs to be surpassed on a closing basis to restore positive sentiment. The Sensex closed at a 10-month low, while the Nifty reached its lowest point in over six months.
Broader markets fared even worse than the main indices, with the Nifty MidCap index dropping by 2.2% and the Nifty SmallCap index declining by 2.1%. Among sectoral indices, metal stocks saw the most significant decrease, with the Nifty Metal index being the worst performer of the day.
In contrast, the Nifty IT index was the only sector that ended the session in positive territory, supported by gains in specific technology stocks. Within the Sensex, Bharti Airtel, Infosys, and Tech Mahindra were the top gainers, managing to close in the green amidst the overall market weakness.
On the losing side, Tata Steel was the biggest decliner, followed by losses in Larsen & Toubro, Bajaj Finance, UltraTech Cement, NTPC, and InterGlobe Aviation, which operates IndiGo airline. Market experts emphasized that global developments, especially geopolitical tensions, are being closely monitored as any escalation could lead to continued high volatility in the near future.
