Mumbai, May 29: The Indian stock market closed significantly lower today, reflecting mixed signals from global markets amid ongoing conflicts in West Asia. The trading session began positively, but uncertainty surrounding the U.S.-Iran agreement led to limited movement in benchmark indices for most of the day. However, a sudden wave of heavy selling occurred towards the end, causing the Sensex to drop nearly 1,300 points, while the Nifty 50 fell to 23,485.
At the close, the 30-share Sensex fell by 1,092.06 points, or 1.44%, settling at 74,775.74. The NSE Nifty 50 dropped by 359.40 points, or 1.50%, to close at 23,547.75.
During the day, the Sensex opened at 75,988.51, reaching an intra-day high of 76,220.02 and a low of 74,589.11. The Nifty 50 opened at 23,902.15, hitting a high of 24,002.80 and a low of 23,484.75.
In broader markets, the Nifty Midcap index fell by 1.33%, while the Nifty Smallcap index dropped by 0.85%. Sector-wise, the Nifty Oil and Gas index saw a decline of 2.47%, the Nifty Metal index fell by 2.02%, and the Nifty Financial Services excluding banks dropped by 2.02%. Additionally, sectors such as Nifty Auto, Nifty FMCG, Nifty Pharma, Nifty Private Bank, Nifty Healthcare, and Nifty Consumer Durables recorded declines of over 1%. Conversely, the Nifty IT index gained 0.60%.
Within the Nifty 50 index, shares of Tech Mahindra, HCL Tech, Wipro, Nestlé India, and L&T rose by over 1%, while Powergrid, Indigo, ONGC, Max Healthcare, Eicher Motors, and Tata Consumer saw the most significant declines.
Investors faced a loss of approximately ₹6 lakh crore in a single session, as the total market capitalization of BSE-listed companies fell from around ₹471 lakh crore to about ₹465 lakh crore.
A market expert noted that tensions in the Middle East are expected to ease, contributing to a decline in international crude oil prices. Brent crude dropped by more than 1.5%, falling below $88 per barrel, while domestic crude oil futures slipped below ₹8,400 per barrel.
Experts are closely monitoring developments in the Strait of Hormuz and related diplomatic events. Throughout the month, oil prices have decreased by over 17%, indicating a rapid decline in the geopolitical risk premium that had built up in recent months.
Additionally, the Indian rupee strengthened against the dollar, falling below 95.2. The easing of crude oil prices and reduced demand for the U.S. dollar provided support for the rupee, leading to a recovery from recent record lows, which also alleviated some pressure on India’s inflation, import bill, and overall economic situation.
From a technical perspective, the Nifty 50 remained weak throughout the day, with significant selling pressure in the final trading hours. The index slipped below the crucial support level of 23,500, indicating increased bearish pressure in the market. If the Nifty remains below 23,500, it could fall to levels between 23,300 and 23,200 in the near future. The range of 23,750 to 23,800 has now become a strong resistance level, while the 24,000 mark is seen as a significant psychological barrier. Until the Nifty decisively breaks through these levels, selling pressure is likely to persist during any upward movements.
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