Mumbai, August 24: The Indian stock market closed lower on Monday, the first trading day of the week, amid weak global signals due to ongoing tensions in West Asia and rising bond yield concerns. The Nifty and Sensex experienced declines of up to 0.22%. Initially, the major benchmarks opened with gains.
At the close, the BSE Sensex fell by 171.72 points, or 0.22%, to settle at 77,369.11, while the Nifty 50 dropped by 32.95 points, or 0.14%, to reach 24,219.05.
During the session, the Sensex opened at 77,629.56, up 88.72 points, or 0.11%, from its previous close of 77,540.83. It peaked at 77,789.40, gaining 248.56 points, or 0.32%, before hitting a low of 77,201.66, down 339.17 points, or 0.43%.
The Nifty 50 opened at 24,285.05, slightly up by 33 points, or 0.13%, from its previous close of 24,252. It reached an intra-day high of 24,313, up 0.25%, and later dipped to an intra-day low of 24,144.30, down 0.44%.
In broader markets, the Nifty Midcap 100 Index recorded a 0.13% increase, while the Smallcap 100 Index saw a decline of 0.26%.
Sector-wise, all regional indices closed in the red except for IT, Energy, Metals, and Real Estate. The PSU Bank index fell by 1%, while Private Banks, Media, and Consumer Durables dropped by 0.3-0.5%.
Among the Nifty 50 stocks, SBI Life Insurance, Bajaj Finance, Bajaj Finserv, Bharat Electronics (BEL), and TMPV saw the most significant declines. Conversely, JSW Steel, Hindalco, Tata Steel, HCL Tech, Dr. Reddy’s, and Tata Consumer Products recorded the highest gains.
A market expert noted that after a strong start, the domestic benchmarks fell as traders reduced their positions ahead of new U.S. sanctions on Iran. The Nifty briefly dipped below the support level of 24,200 but managed to reclaim it by the close.
The expert further indicated that the market is likely to experience significant volatility in Tuesday’s session as traders adjust their positions based on the new U.S. sanctions on Iran and the potential response from Iran. This crucial event coincides with the NSE’s monthly F&O expiry, which is also significant. Therefore, fluctuations in the market are anticipated on Tuesday.
Support for the Nifty at lower levels is seen between 24,200-24,000, while an important resistance level is at 24,350. A breakthrough above this level could lead to substantial gains for the Nifty.
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