Indian stock market under sustained selling pressure over West Asia tensions

Mumbai, March 21 The Indian equity benchmarks closed in the red for the fourth consecutive week, showing sustained selling pressure amid escalating geopolitical tensions in West Asia.

Nifty dipped 0.16 per cent during the week, and gained 0.49 per cent on the last trading day to reach 23,114. At close, Sensex was up 324 points or 0.44 per cent at 74,532. It declined 0.04 per cent during the week.

Both indices began the week on a flat note but soon gained momentum, mainly due to buyer interest for metal stocks.

Elevated crude oil prices, holding above $100 per barrel, continued to raise concerns around inflation and India’s trade deficit.

Sector-wise, Nifty IT and PSU Banks emerged as the top performers. Metal stocks also saw strong buying interest, with the Nifty Metal index rising over 2 per cent, supported by positive brokerage commentary and an improved demand outlook.

Broader indices showed divergence with the benchmark indices during the week, as the Nifty Midcap100 gained 0.06 per cent, while Nifty Smallcap100 dipped 1.11 per cent.

Indian rupee breached the 93 mark to hit a record low of Rs 93.49 against the US dollar due to high dollar demand, sustained FII outflows and broader global currency pressures.

"The near-term outlook remains cautious, with pressure from elevated crude oil prices and ongoing geopolitical tensions in West Asia. Sentiment continues to be weighed down by persistent foreign investor selling, with FIIs recording cumulative outflows of Rs 81,263 crore over the past 13 sessions," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.

Analysts said that 23,850 remains the immediate resistance for Nifty, followed by 24,000 and 24,150. On the downside, 22,950 and 22,700 serve as crucial support levels.

The index has declined nearly 13 per cent from its all-time high, underscoring a significant corrective phase in the broader market.

For Bank Nifty, 53,000-52,000 is viewed as the immediate support levels, market participants said. On the upside, 54,000-55,000 act as the immediate resistance, they added.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Open in app