Mumbai, March 14: The escalating geopolitical tensions in West Asia have significantly affected the Indian stock market. This week, major domestic benchmark indices plummeted by nearly 6%, creating a persistent atmosphere of selling.
During the week, the Nifty index recorded a decline of 5.31%, closing at 23,151 after a drop of 2.06% on the last trading day. Meanwhile, the Sensex fell by 1,470.50 points, or 1.93%, ending at 74,564.
Experts attribute this substantial decline to a sharp rise in crude oil prices and growing economic concerns for energy-importing nations.
The Nifty Auto index experienced a severe drop of approximately 10 to 11%, marking its worst weekly performance since March 2020. Almost all stocks in this index faced heavy selling pressure.
Sector-wise, the banking, metal, and auto sectors saw the most significant declines on the last trading day.
As a result of this sharp downturn, investors lost around ₹10 lakh crore in a single trading session (Friday).
Broad market indices also recorded losses, with the Nifty Midcap 100 index falling by 4.59% and the Nifty Smallcap 100 index declining by 3.66%.
Market experts suggest that the immediate support level for the Nifty is around 23,000, while resistance may be observed at 23,300 and 23,500.
For the Bank Nifty, the first support level is considered to be 53,500, followed by the crucial level of 53,000. Conversely, resistance levels are seen at 54,000 and 54,300.
Analysts have noted that the India VIX has risen above 22, indicating increasing fear in the market and the potential for greater volatility in the near future.
They also warn that a potential shortage of LNG and LPG could impact production, while pressure on CNG availability may alter consumer demand patterns, especially in urban areas where CNG vehicles are prevalent.
According to experts, high crude oil prices heighten inflation risks, putting pressure on the rupee and weakening investor sentiment.
Meanwhile, the Indian rupee has weakened for the second consecutive week, closing at a record low of 92.45 against the US dollar.
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