Sensex, Nifty Suffer Sharpest Fall in Over Three Months as Trump's Iran Ceasefire Remarks Rattle Markets
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Indian benchmark equity indices recorded their sharpest single-day decline in more than three months on Wednesday after renewed geopolitical tensions in West Asia unsettled global markets, triggering broad-based selling across sectors.
The BSE Sensex plunged 1,677.12 points, or 2.15%, to close at 76,503.60, while the NSE Nifty 50 fell 516.65 points, or 2.12%, to settle at 23,882.05.
The sell-off followed heightened investor anxiety after US President Donald Trump said the ceasefire with Iran was over, although negotiations between the two sides could continue following recent exchanges of strikes in the Strait of Hormuz.
Geopolitical concerns hit investor sentiment
Market participants turned risk-averse as renewed uncertainty in West Asia weighed on global sentiment.
The escalation prompted investors to reduce exposure to equities, resulting in widespread losses across domestic markets.
Banking stocks lead market decline
The weakness was broad-based, with banking stocks witnessing the sharpest selling pressure.
Among the sectoral indices, the Nifty PSU Bank and Nifty Bank indices emerged as the worst performers during the session.
By contrast, the Nifty Metal and Nifty Pharma indices outperformed the broader market, although both ended the day in negative territory.
Among individual stocks, Jio Financial Services, InterGlobe Aviation, and Shriram Finance were the biggest laggards on the Nifty. Only four constituents of the benchmark index closed in positive territory.
Key technical levels
According to market analysts, the 24,000 level is expected to act as the immediate resistance for the Nifty, followed by 24,200.
They said the index would need to sustain above these levels to improve its near-term technical outlook.
On the downside, analysts identified the 23,800 zone as an important support level. A decisive breach below that mark could accelerate selling and push the index towards the 23,600–23,500 range.
Analysts said market direction in the near term is likely to remain sensitive to developments in West Asia, global risk sentiment and crude oil prices.
