Mumbai: Indian equity markets extended their decline for the third consecutive session on Wednesday as escalating US-Iran tensions pushed Brent crude prices to the crucial $100-per-barrel mark, raising concerns over inflation and the broader economic outlook.
The benchmark Sensex fell 813.35 points, or 1.08 per cent, to settle at 74,764.23, while the Nifty declined 203.60 points, or 0.86 per cent, to close at 23,431.50.
Commenting on Nifty technical outlook, experts said that 23,550–23,600 now remains the immediate resistance zone.
“A sustained move above 23,600 would be required to improve and trigger a recovery towards 23,700–23,800,” market watchers stated.
“On the downside, the 23,40o zone now acts as the immediate support area,” analysts added.
The sell-off was led by information technology stocks, with Infosys, HCL Technologies and Tech Mahindra emerging as the biggest losers among Nifty constituents. The sharp decline in IT stocks weighed heavily on the benchmark indices amid broader risk aversion in the market.
The broader market also remained under pressure. The Nifty MidCap index declined 0.51 per cent, while the Nifty SmallCap index ended 0.48 per cent lower.
Among sectors, the Nifty IT index was the worst performer, falling more than 3 per cent by the close. The Nifty Realty index also underperformed amid the weak market sentiment.
In contrast, the Nifty Metal index emerged as the relative outperformer, limiting some of the broader market weakness.
Experts said that market sentiment remained cautious as the sharp rise in crude oil prices raised concerns about higher input costs, inflationary pressures and the potential impact on 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.
(IANS)
