Sensex, Nifty extend losses for 3rd straight session amid geopolitical tensions

Indian stock benchmarks extended declines for a third consecutive session on Wednesday as escalating geopolitical uncertainties dampened investor sentiment.

The BSE Sensex closed at 81,909.63, retreating 270.84 points or 0.33 percent. The NSE Nifty settled at 25,157.5, dropping 75 points or 0.3 percent.

Analysts highlighted potential downside risks, noting: “Consistent trading below 25,130 could trigger a slide toward 24,920-24,900 levels.”

“Current price movements signal consolidation rather than a decisive trend reversal, with the index recording its fourth successive weak closing,” observed market strategists.

Heavyweight stocks faced significant selloffs on the BSE, with ICICI Bank, Trent, Bharat Electronics, Axis Bank, and Larsen & Toubro emerging as the primary laggards.

The downward trend was partially offset by buying activity in stocks like Eicher Motors, UltraTech Cement, Adani Ports, and InterGlobe Aviation, cushioning the benchmarks from steeper losses.

Sectoral performance showed marked divergence. Chemical stocks suffered the steepest decline, pulling the Nifty Chemical index down by 2.12 percent.

Consumer durable and banking sectors also faced headwinds, with their respective indices falling 1.66 percent and 1.02 percent.

Contrastingly, metal stocks demonstrated relative strength with the Nifty Metal index advancing 0.57 percent, while the oil and gas gauge edged up 0.27 percent.

Broader markets mirrored the weakness, as the Nifty MidCap 100 index slid 1.14 percent and the SmallCap index retreated 0.9 percent.

The rupee remained under pressure, depreciating nearly 0.70 percent to trade below 91.60 against the US dollar. Geopolitical friction, unresolved trade discussions, and surging gold prices contributed to the currency’s volatility.

Forex analysts warned: “Rallying precious metals prices have amplified import costs, keeping the rupee vulnerable. The currency is expected to fluctuate between 90.90 and 92 in the immediate term.”

(With inputs from IANS)