Sensex, Nifty Decline 0.5 Pc As IT, Metal, PSU Bank Shares Drag Markets

(MENAFN- IANS) Mumbai, Sep 7 (IANS) Indian benchmark equity indices ended lower on Monday, weighed down by sharp declines in IT, metal, PSU bank and media stocks amid escalating geopolitical tensions, volatility in oil prices and growing concerns over monetary tightening.

The Sensex fell 382.62 points, or 0.5 per cent, to close at 76,132.81, while the Nifty declined 118.55 points, or 0.5 per cent, to 23,779.15.

Commenting on Nifty technical outlook, experts said that on the upside, the 23,800 zone, which had previously acted as an important support during earlier declines, is now likely to serve as the immediate resistance level.

"However, the 24,000 mark remains the key psychological hurdle. Unless the index decisively reclaims and sustains above this level, selling pressure at higher levels is likely to persist, keeping the overall technical structure weak," a market expert noted.

"On the downside, 23,750–23,700 zone remains the immediate support, based on today's intraday low. A decisive closing below this level could intensify selling pressure and expose the index to the 23,600 region," an analyst mentioned.

Selling pressure was particularly visible in several heavyweight stocks, with Infosys, SBI Life Insurance Company and HDFC Life Insurance Company emerging as the top losers on the Nifty index.

The broader market also remained subdued, although the decline was relatively contained. The Nifty MidCap index fell 0.46 per cent, while the Nifty SmallCap index managed to edge up 0.02 per cent.

Among sectoral indices, IT and metal stocks came under significant pressure, while PSU banks, realty and media shares also underperformed the broader market. The weakness in these sectors reflected a cautious investor mood amid concerns over the impact of geopolitical developments, fluctuations in crude oil prices and the possibility of tighter monetary conditions.

On the other hand, pharma and healthcare stocks bucked the broader trend and outperformed, providing some support to the market.

Experts said that the market remained sensitive to global developments as investors assessed the potential economic and inflationary impact of geopolitical tensions and higher oil price volatility.

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