This uncertainty troubled traders and selling started in all sectors. Nifty ended the day down 1.6 percent, down 385.2 points, at 24,480.5.
Heavy selling was also seen in Sensex and it fell 1,122.66 points or 1.40 per cent to close at 79,116.19.
“Immediate support lies around 24,300–24,200, and a major breakdown below this area could further accelerate the decline towards the psychological level of 24,000,” said one expert. “On the upside, 24,600 acts as immediate resistance, followed by a strong supply zone near 24,900-25,000 which needs to be recovered on closing basis to bring back the positive sentiment,” said an analyst.
Sensex closed at its lowest level in 10 months, while Nifty fell to its lowest level in more than six months.
The broader market performed worse than the benchmark index. The Nifty Midcap index fell 2.2 percent, while the Nifty Smallcap index fell 2.1 percent.
Among sectoral indices, metal stocks were the biggest losers, with Nifty Metal index emerging as the biggest loser of the day.
After this there were losses in Nifty PSU Bank and Nifty Realty index. In contrast, the Nifty IT index was the only sector that managed to end the session in positive territory, supported by gains in certain technology stocks.
In the Sensex pack, Bharti Airtel was the top gainer, followed by Infosys and Tech Mahindra. These were the only three stocks that closed in the green amid broader market weakness.
Among the losers, Tata Steel was the biggest laggard. This was followed by losses in Larsen & Toubro, Bajaj Finance, UltraTech Cement, NTPC, and InterGlobe Aviation, which runs IndiGo airline.
Market experts said investors are closely monitoring global developments, especially geopolitical tensions, as volatility could remain high in the short term if it increases further.
“Increased geopolitical uncertainty took a heavy toll on investor confidence, leading to rapid unwinding of positions and a defensive shift in market participation,” said a market expert.
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