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Sensex, Nifty Fall on Global Weakness, Oil Prices & Geopolitical Tensions

Indian equity benchmarks Sensex and Nifty opened lower on Friday, tracking weak global markets and rising crude oil prices amid Middle East tensions. While the main indices declined, the broader market showed resilience with the Midcap and Smallcap indices trading in positive territory. Sectoral performance was mixed, with IT and Pharma gaining while Private Bank and Auto sectors were among the top losers. Market participants cited geopolitical risks as a threat to global inflation and future monetary policy, with technical analysis suggesting key resistance and support levels for Nifty and Bank Nifty.

Key Points: Sensex, Nifty Drop Amid Global Cues, Middle East Tensions

  • Sensex down 365 points
  • Midcap & Smallcap indices gain
  • IT & Pharma sectors resilient
  • FIIs net sellers, DIIs net buyers
2 min read

Sensex, Nifty post early losses amid weak global cues

Indian markets open lower tracking global weakness, rising oil prices, and Middle East tensions. IT and pharma sectors show resilience while private banks decline.

"Persistent geopolitical tensions in the Middle East threatens renewed global inflationary pressures - Market Participants"

Mumbai, March 6

The Indian equity markets posted losses in early trade on Friday tracking global weakness, crude oil prices amid tensions in the Middle East.

As of 9.28 am, Sensex lost 365 points, or 0.46 per cent, to reach 79,650 and Nifty dipped 103 points, or 0.42 per cent to reach 24,662.

Main broad-cap indices showed divergence with the benchmark indices, as the Nifty Midcap 100 added 0.30 per cent, and the Nifty Smallcap 100 gained 0.45 per cent.

All sectoral indices traded in red except IT, pharma as well as oil and gas, up 1.28 per cent, 0.16 per cent and 0.15 per cent, respectively. Nifty private bank and auto were the top losers, down 1.18 per cent and 0.65 per cent, respectively.

Persistent geopolitical tensions in the Middle East threatens renewed global inflationary pressures and the possibility of tighter monetary policy conditions ahead, market participants said.

The immediate resistance zone of Nifty is placed at 24,850, while support is observed in the 24,550-24,500 range.

The RSI at 37.55 indicates improving momentum after rising from oversold levels, analysts said, adding that fresh long positions should ideally be considered only after a clear and sustained breakout above the 25,000 level.

Resistance for Bank Nifty is seen in the 59,300-59,400 range, while the 58,700-58,800 zone remains a key support area, market participants said.

Overnight, oil prices surpassed $80 per barrel mark, although Brent futures eased slightly Friday to trade at $84.64.

The US Court of International Trade ruled that companies were entitled to receive tariff refunds from US President Donald Trump's duties that were struck down by the Supreme Court.

In Asian markets, China's Shanghai index gained 0.25 per cent, and Shenzhen added 0.8 per cent, Japan's Nikkei eased 0.02 per cent, and Hong Kong's Hang Seng Index gained 1.72 per cent. South Korea's Kospi lost 1.77 per cent.

The US markets ended in red overnight as Nasdaq lost 0.26 per cent. The S&P 500 dipped 0.56 per cent, and the Dow Jones declined 1.61 per cent.

On March 5, foreign institutional investors (FIIs) net sold equities worth Rs 3,752 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 5,153 crore.

- IANS

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Reader Comments

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Priya S
The Middle East tensions are really spooking the market. Oil above $80 is a major worry for our economy and inflation. RBI might have to delay rate cuts if this continues. Feeling anxious about my SIPs today.
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Aman W
Good to see IT and Pharma in green. They are defensive sectors and often do well when there's global uncertainty. My portfolio is heavy on these, so not too worried about today's fall. Time to average down on some quality private bank stocks maybe?
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Sarah B
As someone new to investing in India, articles like this are helpful but also overwhelming. So many indices and numbers! The key takeaway for me is the support and resistance levels. Will wait for a clear breakout above 25,000 before adding more to my Nifty Bees.
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Vikram M
The fall is not even half a percent, yaar. Media makes it sound like a crash. Market has run up so much, a small correction is healthy. Look at the RSI improving from oversold levels. This is a buying opportunity for those who missed the earlier rally.
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Karthik V
Respectfully, while the analysis is fine, I wish financial journalism focused more on what this means for the common person's savings and loans, not just traders and resistance levels. The auto sector down affects jobs, private banks down affects loan growth. That's the real story.
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