Hyderabad: The Nifty entered correction territory on Monday as Indian stock markets tumbled amid rising geopolitical tensions linked to the conflict between the United States and Iran.
Heavy selling hit both benchmark indices during the trading session. However, markets recovered partially later as crude oil prices eased.
The Nifty 50 settled at 24,028.05, falling 422.40 points or 1.73 percent. As a result, the index dropped more than 10 percent from its record high of 26,373 reached on January 5.
Similarly, the BSE Sensex ended at 77,566.16, down 1,352.74 points or 1.71 percent.
Despite the sharp decline, both indices recovered from their intraday lows during the session.
Nifty correction territory triggers cautious market outlook
The Nifty rebounded nearly 160 points from its day’s low of 23,868.05. Meanwhile, the Sensex recovered around 1,142 points from the intraday low of 76,424.55.
Market analysts said the immediate support for the Nifty lies in the 23,700–23,600 range. If the index breaks below this zone, the decline could extend toward 23,400–23,300.
However, analysts see resistance near 24,300. A stronger hurdle stands around 24,600 for a meaningful recovery.
Broader markets performed weaker than benchmark indices during the session. The Nifty Midcap index declined 1.97 percent.
Similarly, the Nifty Smallcap index fell 2.22 percent, reflecting broader market weakness.
Among sectoral indices, the Nifty PSU Bank index emerged as the worst performer. It dropped 3.97 percent due to selling pressure in public sector bank stocks.
However, the Nifty IT index showed resilience. It edged up 0.08 percent to close at 30,162.05.
Analysts said markets will remain sensitive to geopolitical developments and crude oil price movements in the coming days.
