Mumbai, May 11 (IANS) Indian benchmark equity indices ended sharply lower on Monday as investor sentiment weakened amid rising concerns over the impact of the ongoing West Asia conflict on global growth and inflation.
At the closing bell, the Nifty was down by 360.3 or 1.49 per cent at 23,815.85, and the Sensex ended 1312.91 points or 1.70 per cent lower at 76,015.28.
Commenting on the Nifty technical outlook, experts said that overall, the index appears vulnerable in the short term.
“Immediate support is placed at 23,700, below which the decline may accelerate further. On the upside, resistance is placed at 24,000, above which sentiment could improve,” an analyst stated.
Weak global cues and fears of prolonged geopolitical tensions weighed on market sentiment throughout the session.
Among the major laggards on the Nifty index were Titan Company, InterGlobe Aviation and State Bank of India.
On the other hand, Coal India, Adani Ports and Hindustan Unilever were among top gainers.
The broader markets also remained under pressure, with the Nifty MidCap index ending 1.05 per cent lower while the Nifty SmallCap index declined 1.13 per cent.
Sector-wise, the Nifty Consumer Durables index emerged as the worst performer, plunging nearly 4 per cent.
The Nifty Realty, Nifty PSU Bank and Nifty Media indices also witnessed significant declines as investors turned cautious amid fears of higher inflationary pressures and slowing economic activity.
However, some defensive sectors managed to outperform the broader market. The Nifty FMCG, Nifty Pharma and Nifty Healthcare indices showed relative resilience as investors shifted towards safer bets during the market volatility.
Analysts said prolonged tensions in the region could lead to higher crude oil prices, increased inflationary pressures and uncertainty over the global economic outlook, factors that are likely to keep investors cautious in the near term.
“Rising uncertainty surrounding crude oil prices and fears of further geopolitical escalation triggered aggressive unwinding of positions, dragging indices lower into the close,” an analyst stated.
Meanwhile, the Indian rupee started the week on weak note, closing at the record low level as geopolitical volatility intensified.
“From a technical standpoint, the USDINR pair has resistance at 95.45 and 95.80, while support shifted to 94.70,” an analyst mentioned.
–IANS
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