Mumbai, May 12 (IANS) Indian equity benchmarks extended their losses for a second straight session on Tuesday as escalating tensions in West Asia, surging crude oil prices and concerns over the broader economic fallout triggered a sharp selloff across sectors.

The 30-share Sensex plunged 1,456.04 points, or 1.92 per cent, to close at 74,559.24, while the Nifty declined 436.3 points, or 1.83 per cent, to settle at 23,379.55.

Commenting on Nifty technical outlook, experts said that 23,300 now acts as the immediate support level, followed by 23,100 where significant Put OI concentration is placed.

“Further below, the 23,000 psychological mark remains a critical support zone where strong buying demand had previously emerged,” an analyst stated.

“On the upside, 23,500 has now turned into an immediate resistance after the breakdown, followed by 23,800 where high Call OI concentration and supply pressure continue to remain strong,” an analyst mentioned.

On 30-share index, SBI was the only stock to close in green. Rest all end the session lower.

Tech Mahindra, HCL Tech, Titan and TCS were among top losers by falling up to 4.44 per cent.

Investor sentiment remained weak after Prime Minister Narendra Modi urged citizens to reduce energy consumption, foreign travel and gold purchases amid rising geopolitical uncertainties and pressure from elevated crude oil prices.

The remarks intensified fears that the ongoing West Asia conflict could have a wider economic impact on India.

The weakness was more pronounced in the broader market, where the Nifty MidCap index dropped 2.54 per cent and the Nifty SmallCap index tumbled 3.17 per cent.

Sectorally, information technology and real estate stocks witnessed the sharpest declines. The Nifty IT and Nifty Realty indices emerged as the top laggards, while consumer durable and media shares also remained under pressure.

However, metal and oil & gas stocks outperformed the broader market as higher commodity prices boosted sentiment in those sectors.

Analysts said persistent volatility in oil prices and uncertainty surrounding the geopolitical situation are likely to keep markets under pressure in the near term, especially given India’s dependence on crude imports.

“Near-term market sentiment is likely to stay volatile due to crude and currency concerns, though any signs of geopolitical easing could support relief rallies, aided by resilient domestic fundamentals and stable institutional flows,” an analyst stated.

–IANS

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