Mumbai, June 8 (IANS) Indian equity markets ended sharply lower on Monday as escalating tensions in West Asia triggered a risk-off sentiment across global markets, leading to a sell-off in domestic equities amid a spike in crude oil prices.

The benchmark index Sensex declined 719.08 points, or 0.97 per cent, to close at 73,524.26, tracking weakness in global equities and rising geopolitical uncertainty.

Similarly, the 50-share Nifty index fell 243.70 points, or 1.04 per cent, to settle at 23,123. Commenting on Nifty technical outlook, experts said that the 23,250–23,300 zone now acts as the immediate resistance area, followed by 23,450 where the latest breakdown originated.

“A decisive move above these levels will be required to improve market structure and trigger any meaningful recovery,” the analyst stated.

“On the downside, 23,100 remains the immediate support to watch. A breakdown below this level could accelerate selling pressure towards the crucial 23,000 mark,” a market expert noted.

Market sentiment was hit after reports suggested that Iran fired missiles at Israel, raising concerns over the fragile security situation in the region and dampening hopes of any immediate peace breakthrough between Washington and Tehran.

The development also fuelled worries over potential disruptions in global oil supply, pushing crude prices higher.

Broader markets witnessed even steeper losses, with the Nifty MidCap index declining 1.66 per cent and the Nifty SmallCap index falling 2.88 per cent.

Sectorally, selling pressure was broad-based, with Nifty Realty, Nifty Metal and Nifty Auto indices underperforming the most during the session.

In contrast, the Nifty Healthcare index managed to outperform, offering some relative resilience amid the broader market decline.

Experts said that the sharp fall in domestic equities reflected a combination of global risk-off cues, geopolitical tensions in West Asia and concerns over rising crude oil prices impacting inflation and corporate margins.

“Selling pressure resurfaced during the afternoon session as global uncertainty and continued foreign investor caution prevented the market from sustaining higher levels,” a market expert mentioned.

–IANS

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