Stock Market Today: Sensex Slides Over 530 Points, Nifty Breaches 24,250 Amid Geopolitical Jitters

The Indian stock market opened sharply lower on Wednesday, with benchmark indices extending losses.

In early trade as escalating US-Iran tensions, a spike in crude oil prices and caution ahead of the June-quarter earnings season dampened investor sentiment. At 9:31 am, the BSE Sensex was down 538.32 points, or 0.69 per cent, at 77,642.40, while the NSE Nifty50 slipped 171.95 points, or 0.70 per cent, to 24,226.75.

Broader markets also traded in negative territory, though the decline was relatively moderate. The Nifty Next 50 fell 0.79 per cent, the Nifty 100 lost 0.72 per cent and the Nifty 200 declined 0.65 per cent. The Nifty Midcap 100 and Nifty Smallcap 100 were down 0.38 per cent and 0.27 per cent, respectively.

Volatility increased, with the India VIX jumping nearly 7 per cent to 12.45 as investors reacted to fresh geopolitical developments.

Geopolitical Risks Rattle Markets

Global sentiment weakened after the United States carried out fresh military strikes on Iran, renewing concerns over stability in the Middle East and raising fears of disruptions to global oil supplies.

The uncertainty pushed Brent crude prices up 2.6 per cent to around $76.1 per barrel after a 3 per cent surge in the previous session. Asian markets mirrored the cautious mood following overnight losses on Wall Street, adding to pressure on domestic equities.

Pharma Shines, Cyclicals Drag

Defensive sectors outperformed in an otherwise weak market.

The Nifty Pharma index gained 1.12 per cent, while the Healthcare index advanced 0.97 per cent. Nifty IT traded largely flat with a slight positive bias.

On the other hand, Oil & Gas stocks led the decline, with the sector falling 1.75 per cent. PSU Banks dropped 1.34 per cent, Auto stocks declined 1.26 per cent, while FMCG and Media also witnessed broad-based selling.

Among Sensex constituents, IndiGo was the biggest loser, shedding nearly 2.8 per cent. Reliance Industries, Bajaj Finance, SBI, Maruti Suzuki, Mahindra & Mahindra and Asian Paints also traded lower.

Sun Pharma emerged as the top gainer, followed by HCLTech, Tech Mahindra, Infosys and Power Grid.

Analysts Expect Consolidation to Continue

Market experts believe the recent weakness is part of a consolidation phase rather than a reversal of the broader uptrend.

Hitesh Tailor, Research Analyst at Choice Equity Broking, said the Nifty continues to hold a constructive technical setup as long as it remains above the crucial 24,000-24,200 support zone. He expects resistance in the 24,500-24,600 range, with a decisive breakout needed to resume the market’s upward trajectory.

Ponmudi R, CEO of Enrich Money, said geopolitical uncertainty and higher crude oil prices are likely to keep investors cautious in the near term. However, he added that sustained buying by Foreign Institutional Investors (FIIs), who have turned net buyers in recent sessions, could provide support and help the market absorb external shocks.

Technical Outlook

Technical indicators continue to point towards a positive medium-term trend despite the weak opening.

Tailor noted that the Nifty remains above most of its key moving averages, while the 10-day EMA has crossed above the 100-day EMA, signalling improving momentum. The RSI remains above 63 and the MACD continues to trade above its signal line, suggesting that bullish undertones remain intact.

Options data indicates immediate support around 24,200-24,000, while the 24,500-24,600 zone remains the key hurdle. A sustained move above this range could pave the way for the next leg of the market’s rally once the current consolidation phase is complete.