Indian stocks slide for fourth day as Middle East tensions spike crude
Indian benchmark indices extended losses amid rising crude prices triggered by escalating US-Iran hostilities, putting key technical support levels in the crosshairs.
Indian equities suffered a fourth consecutive session of declines as escalating military conflict between the US and Iran drove a sharp rally in crude oil prices. Renewed concerns over global artificial intelligence spending further dampened sentiment. The Nifty 50 fell below 23,900 to close at 23,869, while the BSE Sensex dropped 363 points to 76,391.
The sell-off was broad, reflecting a wholesale shift away from risk as investors assessed the economic fallout of disrupted energy flows. Real estate stocks bore the brunt of the selling, falling 1.8%, while capital markets lost 1.2%. Banking and financial stocks also remained under pressure, with the Bank Nifty shedding 534 points to finish at 56,592.
Market anxiety stems from direct attacks on global shipping routes. After Iran-backed Houthi rebels struck two Saudi Arabian oil tankers in the Red Sea, US President Donald Trump warned of further consequences. “From this point forth, any and all damages done to Ships, Cargo, or anything related thereto will be paid for by Iranian Money that the United States has in its possession and controls,” Trump stated.
Futures trading indicates the downturn will deepen at Friday's open, with the Gift Nifty trading roughly 175 points below Thursday's close early in the session. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, warned that a breach of immediate support could trigger sharper losses. “As we have mentioned earlier, with the sentiment getting into a cautious approach, the index would need to sustain the important support near the 23,800-level, failing which the overall bias would turn weak and can slide further, having the next major support positioned near the 23,000 zone in the coming days,” she said.
The banking index looks particularly vulnerable after slipping below its 50-day exponential moving average of 56,800. “The Bank Nifty index as of now is precariously placed and would have the near-term support zone of the 100-period MA at the 55,900 level, which needs to be sustained, failing which the overall trend would slightly turn weak, having the next major and crucial support positioned near the 53,500 zone,” Parekh noted.
Media and automobile stocks were the only sectors to demonstrate resilience during the broader market decline. Despite the bearish backdrop, Parekh identified Man Industries (India), Ester Industries, and Orient Electric as intraday opportunities for active traders.
