Daijiworld Media Network - New Delhi

New Delhi, May 26: Indian equity markets ended lower on Tuesday as rising geopolitical tensions in the Middle East triggered caution among investors and led to broad-based selling across key sectors.

The benchmark BSE Sensex dropped 479.26 points, or 0.63 per cent, to close at 76,009.7, while the Nifty 50 declined 118 points, or 0.49 per cent, to settle at 23,913.7.

Market sentiment weakened after reports of fresh US defensive strikes in southern Iran, which dampened expectations of a possible diplomatic breakthrough in the region and raised concerns over further escalation.

Analysts said the renewed geopolitical uncertainty weighed on global risk appetite and increased worries over potential volatility in crude oil prices and international financial markets.

From a technical perspective, market experts noted that the 24,000 mark has now emerged as an immediate resistance level for the Nifty after shifting from a previous support zone.

They added that the 24,100 level remains another important hurdle due to heavy call option writing and visible supply pressure from institutional traders.

On the downside, analysts identified 23,850 as immediate support for the index, while the broader 23,500–23,600 range continues to be viewed as a strong demand zone backed by substantial put option activity.

Among Sensex stocks, major laggards included Trent Limited, Tata Consultancy Services, Bajaj Finance and Bharti Airtel.

On the gaining side, Adani Ports and Special Economic Zone, Tech Mahindra and Eternal managed to end in positive territory.

Within the Nifty pack, stocks such as Apollo Hospitals Enterprise, Wipro and Bharti Airtel were among the top losers.

Sector-wise, the Nifty Consumer Durables index recorded the steepest decline, falling over 1 per cent during the session. Banking and financial shares also remained under pressure, dragging down the Nifty Financial Services and Nifty Private Bank indices.

Despite weakness in frontline indices, broader markets displayed relative resilience. The Nifty MidCap index gained 0.54 per cent and touched a fresh intraday high, while the Nifty SmallCap index ended 0.35 per cent higher.

Metal and chemical stocks outperformed the broader market, with both the Nifty Metal and Nifty Chemical indices closing in the green, helping cushion overall market losses.

Analysts said investors are likely to remain cautious in the near term as geopolitical developments continue to influence market direction and global sentiment.