Sensex, Nifty drop over 1 pc over heightened Middle East tensions

Mumbai, March 2 The Indian equity markets opened the week sharply lower on Monday, tracking a broad risk-off sentiment across global markets due to the US, Israel and Iran war. As of 9.28 am, Sensex lost 891 points, or 1.10 per cent, to reach 80,395 and Nifty eased 268 points, or 1.07 per cent, at 24,909. Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 declined 1.14 per cent, and the Nifty Smallcap 100 lost 1.35 per cent. All sectoral indices traded in red with Nifty realty, oil and gas as well as auto leading the losses, down 2.19 per cent, 1.81 per cent and 1.35 per cent, respectively. The heightened uncertainty in the Middle East is likely to keep risk appetite subdued throughout the session, analysts said, adding aviation stocks may remain under pressure following the suspension of flights across key UAE routes, highlighting the immediate operational fallout from the regional instability, said market watchers. Further, weekly Nifty expiry on Monday ahead of the Holi market holiday could intensify volatility, they noted. Analysts said before the market opening that the formation of a fourth consecutive red candle in Nifty charts and recent close below the 200-day EMA already reflected increasing bearish dominance and a weakening broader trend. Technically, resistance is placed in the 25,300–25,350 zone, while immediate support is seen at 25,000–25,050, they said. Crude oil prices jumped more than 7 per cent, as market participants fear US-Iran war will have broader regional ramifications that will lead to a major supply disruption. In Asian markets, airline stocks led losses as airspace closure over the Middle East and airport closures unsettled travel markets. China's Shanghai index was flat, and Shenzhen dipped 0.75 per cent, Japan's Nikkei declined 1.5 per cent, and Hong Kong's Hang Seng Index plummeted 1.68 per cent. South Korea's Kospi lost 1 per cent. The US markets ended largely in red in the last trading session, as Nasdaq declined 0.92 per cent. The S&P 500 lost 0.43 per cent, and the Dow Jones declined 1.05 per cent. 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