Sensex declined for the third consecutive session on Wednesday. Escalating US-Iran tensions pushed Brent crude towards the crucial $100-per-barrel mark. The surge heightened concerns over inflation and the broader economic outlook.
The benchmark Sensex dropped 813.35 points, or 1.08 per cent, to settle at 74,764.23. The Nifty slipped 203.60 points, or 0.86 per cent, to close at 23,431.50.
Market experts said 23,550–23,600 now represents the immediate resistance zone for the Nifty. A sustained move above 23,600 could improve sentiment and trigger a recovery towards 23,700–23,800.
On the downside, analysts identified the 23,400 zone as the immediate support area.
Information technology stocks led the sell-off. Infosys, HCL Technologies and Tech Mahindra emerged as the biggest losers among Nifty constituents. Their decline exerted significant pressure on the benchmark indices amid widespread risk aversion.
The broader market remained weak. The Nifty MidCap index fell 0.51 per cent, while the Nifty SmallCap index declined 0.48 per cent.
Sectorally, the Nifty IT index emerged as the weakest performer, losing more than 3 per cent by the close. The Nifty Realty index underperformed. Conversely, the Nifty Metal index proved relatively resilient and limited some market weakness.
Experts attributed the cautious sentiment to higher crude prices, which could increase input costs, inflationary pressures and India’s import bill.
“Today’s market sell-off reflects a combination of rising geopolitical risks, crude oil nearing the $100/barrel mark, rupee weakness and renewed FII selling,” analysts said.
“Going ahead, volatility is likely to remain elevated until there is clarity on the Middle East situation and crude prices,” market watchers added.
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