Daijiworld Media Network - Mumbai

Mumbai, Mar 23: Indian equity markets witnessed a sharp sell-off on Monday, with benchmark indices BSE Sensex and Nifty 50 closing significantly lower amid rising geopolitical tensions between the United States and Iran.

The Sensex plunged 1,836 points, ending at 72,696.39, while the Nifty dropped 601.85 points to settle at 22,512.65, marking declines of 2.46 per cent and 2.60 per cent respectively.

Market experts noted that the technical outlook remains bearish, with indices continue forming lower highs and lower lows—an indication of sustained downward pressure. Analysts pointed out that the 22,650–22,700 range now acts as immediate resistance, while the 22,900–23,000 zone is emerging as a strong supply area.

The downturn was largely driven by escalating tensions in the Middle East, which triggered widespread selling across sectors. Investor sentiment weakened further as volatility surged, with the India VIX rising over 17 per cent to close at 26.73.

Broader markets underperformed the benchmarks, with mid-cap and small-cap indices witnessing steeper declines. Sectorally, construction stocks bore the brunt of the sell-off, followed by realty and metal stocks. In contrast, IT stocks showed relative resilience, limiting their losses compared to other sectors.

A key factor behind the market fall was the spike in global oil prices. Brent crude climbed to $108.73 per barrel after US President Donald Trump warned of strong action if Iran did not reopen the Strait of Hormuz within 48 hours. In response, Iran signalled potential strikes on energy infrastructure in the region.

Meanwhile, Prime Minister Narendra Modi assured in the Lok Sabha that the government is actively working to ensure uninterrupted energy supplies through the crucial oil transit route.

The ongoing developments have heightened concerns around energy security and inflation, prompting investors to adopt a cautious approach and leading to a broad-based decline in equities.