Sensex, Nifty Fall Over 2% As Middle East Tensions Weigh On Markets

Indian equity benchmarks ended the session with sharp losses on Friday, bringing an end to a brief two-day rally as geopolitical concerns in the Middle East weakened investor sentiment.

Uncertainty surrounding ongoing developments involving the United States, Israel and Iran triggered broad-based selling activity.

The key indices remained under sustained pressure throughout the trading day.

The Nifty slipped 2.09 per cent to finish at 22,819.60, while the Sensex dropped 2.25 per cent to close at 73,583.22.

Market analysts suggested that the immediate outlook remains fragile. They indicated that any upward movement towards the 23,500 mark on the Nifty could encounter resistance due to prevailing selling interest.

On the downside, a fall below 22,800 may open the door for further declines.

Experts advised that, given the uncertain environment, a ‘sell-on-rise’ approach could remain effective in the near term.

Among the Sensex stocks, Reliance Industries recorded the steepest decline during the session. Other notable laggards included Bajaj Finance, IndiGo, Eternal and HDFC Bank, all of which contributed significantly to the downturn.

Meanwhile, only a few stocks, such as TCS, Bharti Airtel and Power Grid, managed to post gains, offering limited support to the indices.

The wider market also ended lower, although it showed slightly better resilience compared to the benchmark indices.

The Nifty MidCap index fell 2.24 per cent, while the SmallCap index declined by 1.88 per cent.

From a sectoral perspective, PSU banking stocks faced the most intense selling pressure, emerging as the weakest performers. Realty and automobile stocks also saw considerable declines, further weighing on sentiment.

In contrast, the IT sector managed to hold relatively steady and emerged as the top-performing segment for the day.

The sharp decline highlights increasing investor caution. Global uncertainties, including fluctuating crude oil prices and geopolitical developments, continue to influence market sentiment.

Analysts expect volatility to persist in the near term as markets react to evolving global cues.

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