Mumbai, March 14 (IANS). The effect of increasing geopolitical tension in West Asia was also seen on the Indian stock market. Major domestic benchmark indices fell by nearly 6 per cent this week, leading to sustained selling in the market.
During the week, Nifty recorded a decline of 5.31 percent and on the last trading day it fell by 2.06 percent and closed at the level of 23,151. Whereas the Sensex fell by 1,470.50 points or 1.93 percent and closed at 74,564.
According to experts, this big fall was seen in the market due to the sharp rise in crude oil prices and increasing economic concerns for energy importing countries.
During this period, there was a huge decline of about 10 to 11 percent in Nifty Auto Index, which is considered to be its worst weekly performance since March 2020. Sharp selling was seen in almost all the shares of this index.
Sector wise, the biggest decline was seen in the shares of banking, metal and auto sectors on the last trading day of the week.
Due to this sharp fall, investors lost about Rs 10 lakh crore in a single trading session (Friday).
At the same time, a decline was also recorded in broader market indices. The Nifty Midcap 100 index fell 4.59 percent and the Nifty Smallcap 100 index fell 3.66 percent.
According to market experts, the immediate support level for Nifty is around 23,000, while resistance can be seen at the levels of 23,300 and 23,500.
At the same time, 53,500 is being considered as the first support level for Bank Nifty, after this the level of 53,000 will be important. On the other hand, levels of 54,000 and 54,300 are being considered as resistance.
Analysts also said that India VIX has reached above the level of 22, which indicates increasing fear in the market and the possibility of more volatility in the times to come.
Analysts say a possible shortage of LNG and LPG could increase the risk of production being affected, while pressure on CNG availability could lead to changes in consumer demand patterns, especially in urban areas where CNG vehicles are used more.
According to experts, higher crude oil prices increase the risk of inflation and also put pressure on the rupee, thereby weakening investor sentiment.
Meanwhile, the Indian rupee remained weak for the second consecutive week and closed at a record low of 92.45 against the US dollar.
–IANS
DBP
