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Sensex Crashes 1,456 Points on West Asia Tensions, Nifty Below 23,400

Indian equity benchmarks extended losses for a second straight session on Tuesday as escalating West Asia tensions and surging crude oil prices triggered a sharp selloff. The Sensex plunged 1,456 points to close at 74,559, while the Nifty declined 436 points to settle at 23,379. Sectorally, IT and realty stocks witnessed the sharpest declines, while metal and oil & gas outperformed. Analysts warned that near-term market sentiment is likely to remain volatile due to crude and currency concerns.

Key Points: Sensex Crashes 1,456 Points; Nifty Below 23,400

  • Sensex plunges 1,456 points to 74,559
  • Nifty falls below 23,400 to 23,379
  • IT and realty stocks among top losers
  • PM Modi urges reduced consumption amid geopolitical risks
2 min read

Sensex crashes 1,456 points, Nifty slips below 23,400 as West Asia tensions rattle markets

Indian markets plunge as West Asia tensions spike crude oil prices. Sensex drops 1,456 points, Nifty slips below 23,400 amid broad selloff.

"Near-term market sentiment is likely to stay volatile due to crude and currency concerns, though any signs of geopolitical easing could support relief rallies. - Analyst"

Mumbai, May 12

Indian equity benchmarks extended their losses for a second straight session on Tuesday as escalating tensions in West Asia, surging crude oil prices and concerns over the broader economic fallout triggered a sharp selloff across sectors.

The 30-share Sensex plunged 1,456.04 points, or 1.92 per cent, to close at 74,559.24, while the Nifty declined 436.3 points, or 1.83 per cent, to settle at 23,379.55.

Commenting on Nifty technical outlook, experts said that 23,300 now acts as the immediate support level, followed by 23,100 where significant Put OI concentration is placed.

"Further below, the 23,000 psychological mark remains a critical support zone where strong buying demand had previously emerged," an analyst stated.

"On the upside, 23,500 has now turned into an immediate resistance after the breakdown, followed by 23,800 where high Call OI concentration and supply pressure continue to remain strong," an analyst mentioned.

On 30-share index, SBI was the only stock to close in green. Rest all end the session lower.

Tech Mahindra, HCL Tech, Titan and TCS were among top losers by falling up to 4.44 per cent.

Investor sentiment remained weak after Prime Minister Narendra Modi urged citizens to reduce energy consumption, foreign travel and gold purchases amid rising geopolitical uncertainties and pressure from elevated crude oil prices.

The remarks intensified fears that the ongoing West Asia conflict could have a wider economic impact on India.

The weakness was more pronounced in the broader market, where the Nifty MidCap index dropped 2.54 per cent and the Nifty SmallCap index tumbled 3.17 per cent.

Sectorally, information technology and real estate stocks witnessed the sharpest declines. The Nifty IT and Nifty Realty indices emerged as the top laggards, while consumer durable and media shares also remained under pressure.

However, metal and oil & gas stocks outperformed the broader market as higher commodity prices boosted sentiment in those sectors.

Analysts said persistent volatility in oil prices and uncertainty surrounding the geopolitical situation are likely to keep markets under pressure in the near term, especially given India's dependence on crude imports.

"Near-term market sentiment is likely to stay volatile due to crude and currency concerns, though any signs of geopolitical easing could support relief rallies, aided by resilient domestic fundamentals and stable institutional flows," an analyst stated.

- IANS

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Reader Comments

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Priya S
😢 My mutual fund portfolio is bleeding today. I know these corrections are normal, but seeing my net worth drop so much in two days is worrying. 23,300 support is crucial now - if we break that, it could get ugly. Let's hope the geopolitical situation stabilizes soon.
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Michael C
As someone who works in IT, seeing Tech Mahindra and TCS drop 4%+ is concerning. We're already dealing with global uncertainty and visa issues, now this. But the Nifty IT heavy sell-off might create buying opportunities for long-term investors. Stay calm and don't panic sell.
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Vikram M
Interesting that only SBI ended in green - shows how defensive the market is turning. Banks usually get hit when rates rise, but maybe investors see value there. The real worry is the broader market - small caps down 3% means retail investors are panicking. Time to review your asset allocation!
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Sarah B
📉 Just waiting for my 401k statement to arrive... Already down from the US tech correction, now Indian markets too. The metals and O&G sectors doing well makes sense with higher commodity prices. But for us common people, it's the fuel prices that hurt the most in daily life.
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Ananya R
Respectfully, the government could have better hedged our oil imports instead of just asking citizens to reduce consumption. We've known about West Asia tensions for weeks. The market crash reflects poor policy preparedness. That said, these corrections are healthy for long-term investors who have the patience to wait it out.

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