Sensex Falls 1,470 Points, Nifty Drops Over 2% As Middle East Tensions Rattle Markets

Indian stock markets ended sharply lower on Friday as escalating geopolitical tensions in the Middle East weakened investor confidence and triggered broad selling across sectors, pushing both benchmark indices deep into negative territory.

Investors remained cautious as the prolonged conflict involving the United States and Iran heightened concerns about a potential gas supply disruption and rising energy costs.

The Nifty 50 dropped 488.05 points, or 2.06 per cent, settling at 23,151.10. The Sensex declined 1,470.50 points, or 1.93 per cent, to close at 74,563.92.

Market analysts noted that the immediate support level for Nifty now stands near 23,100. They identified it as a short-term demand zone during intraday trading.

On the higher side, the range between 23,450 and 23,500 has turned into a strong resistance band. Experts observed that this level aligns with the earlier breakdown point in recent sessions.

Only two stocks, Bharti Airtel and Hindustan Unilever, managed to close in positive territory on the Sensex. Major laggards included Larsen & Toubro, Tata Steel, State Bank of India, Maruti Suzuki India, and Axis Bank.

Market volatility also increased significantly.

The India VIX, commonly called the market’s fear gauge, surged 6.32 per cent during the session to 22.88. It eventually ended the day 5.23 per cent higher at 22.65.

Broader markets mirrored the weakness in benchmark indices. The Nifty Midcap 100 index slipped 2.62 per cent, while the Nifty Smallcap 100 declined 2.52 per cent by the close.

Sectoral indices showed widespread pressure. Metal stocks faced the sharpest decline as the Nifty Metal index plunged around five per cent. PSU Bank and Media indices also underperformed the broader market.

The Indian rupee weakened for the second consecutive week and touched a fresh record low.

Analysts indicated that the USD-INR pair maintains a bullish bias with resistance between 92.50 and 92.70, while immediate support stands near 92.05.

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