Sensex drops over 560 points, Nifty slips below 24,100 amid West Asia tensions
Mumbai, July 14
India's benchmark equity indices ended sharply lower on Tuesday as heightened geopolitical tensions in West Asia triggered broad-based selling, with PSU bank, realty and auto stocks leading the decline.
The Sensex closed 561.46 points, or 0.72 per cent, lower at 77,054.94, while the Nifty slipped 159 points, or 0.66 per cent, to settle at 24,052.05.
Commenting on Nifty technical outlook, experts said that the the index remained range-bound after opening with a gap-down as the NSE weekly options expired.
It found support around the previous day's low while continuing to sustain above the falling trendline.
"In the short term, the outlook is likely to remain positive as long as the index stays above 23,950. On the higher side, it may advance towards the 24,250-24,300 zone," an analyst said.
"However, a decisive fall below 23,950 could weaken the current bullish setup and trigger a phase of consolidation," as per the market expert.
Investor sentiment remained subdued amid growing concerns over developments in West Asia, prompting profit booking across key sectors despite resilience in select defensive stocks.
Among the Nifty constituents, HCLTech, Shriram Finance and HDFC Life Insurance Company emerged as the biggest laggards, weighing on the benchmark index.
The weakness extended to the broader market as well, with the Nifty MidCap index ending 0.44 per cent lower and the Nifty SmallCap index declining 1.01 per cent.
Sectoral indices largely traded in the red, with the Nifty Realty, Nifty PSU Bank and Nifty Auto witnessing the steepest losses. In contrast, the Nifty Pharma index bucked the trend and finished as the top sectoral gainer, reflecting defensive buying amid the broader market weakness.
"Looking ahead, all eyes are now on the US Fed Chair, whose upcoming remarks could set the tone for global rate expectations. Meanwhile, the Q1 earnings season rolls on a positive note but rapid increase in geopolitical risk has dampened the sentiment," as per the market expert.
— IANS
Reader Comments
Another day of sell-off due to geopolitical risks. But the Nifty is showing resilience above 24,000. If the Fed Chair signals a rate cut, we might see a sharp recovery. Patience is key in volatile markets. 📉➡️📈
Honestly, I think the market is overreacting. West Asia tensions have been going on for decades, and India's fundamentals are strong. The Q1 earnings season is on a positive note—why the panic selling? 🤷♀️
HCLTech and Shriram Finance laggards? No surprise there. But Pharma sector holding strong—classic defensive move. My suggestion: stay invested in good stocks, don't panic sell. Market will bounce back. 💪
The Nifty holding above 23,950 is crucial, but the broader market weakness is concerning. PSU banks and realty sectors got hammered. If I were a retail investor, I'd wait for clarity before adding more positions. Caution is warranted.
Aree yaar, everyday something new in the market. West Asia, Fed, geo-politics... humara portfolio pura suffer karta hai. But I'm holding onto my stocks—long-term player here! Chinta mat karo, market life ka hissa hai. 😅
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