Mumbai, June 8:
Indian equity markets witnessed a sharp sell-off on Monday, with benchmark indices ending nearly one per cent lower as escalating geopolitical tensions in West Asia and a surge in crude oil prices dampened investor sentiment.
The BSE Sensex plunged 719.08 points, or 0.97 per cent, to close at 73,524.26, while the NSE Nifty50 fell 243.70 points, or 1.04 per cent, to settle at 23,123.
Market participants remained cautious amid reports of renewed hostilities between Iran and Israel, raising concerns over regional stability and potential disruptions to global oil supplies. The heightened geopolitical uncertainty triggered a risk-off mood across global markets, which spilled over into domestic equities.
The rise in crude oil prices further weighed on sentiment, with investors worried about the potential impact on inflation, corporate profitability, and India’s import bill.
Broader markets witnessed steeper declines compared to frontline indices. The Nifty MidCap index dropped 1.66 per cent, while the Nifty SmallCap index tumbled 2.88 per cent, reflecting widespread selling across market segments.
Sector-wise, realty, metal, and automobile stocks emerged as the biggest losers during the trading session. The Nifty Realty, Nifty Metal, and Nifty Auto indices recorded significant losses as investors reduced exposure to economically sensitive sectors.
In contrast, healthcare stocks displayed relative resilience, with the Nifty Healthcare index outperforming the broader market and limiting losses amid defensive buying.
Market experts attributed the sharp decline to a combination of global risk aversion, geopolitical tensions in West Asia, rising crude oil prices, and continued caution among foreign institutional investors.
According to technical analysts, the Nifty’s immediate resistance zone is now placed between 23,250 and 23,300, followed by the 23,450 level, where the latest market breakdown originated.
“A decisive move above these levels will be required to improve market structure and trigger any meaningful recovery,” analysts said.
On the downside, experts identified 23,100 as the immediate support level. A breach below this mark could intensify selling pressure and drag the index towards the psychologically important 23,000 level.
Selling pressure intensified during the latter half of the trading session as global uncertainty and weak investor confidence prevented the market from sustaining any recovery attempts.
With geopolitical developments continuing to dominate global sentiment, market participants are expected to closely monitor developments in West Asia, crude oil price movements, and foreign investment flows in the coming sessions.
