Mumbai: Indian stock markets witnessed a sharp decline on Friday as heavy selling in the final hour of trade wiped out early gains amid uncertainty over a possible US-Iran understanding and weak investor sentiment.
The benchmark BSE Sensex closed at 74,775.74, tumbling 1,092.06 points or 1.44 per cent, while the Nifty 50 settled at 23,547.75, down 359.40 points or 1.50 per cent.
Markets remained highly volatile throughout the session. The Nifty touched an intra-day high of 24,002.80 before slipping to 23,484.75. Similarly, the Sensex climbed to 76,220.02 during the day but later plunged to a low of 74,589.11 as intense selling emerged in the closing hours.
Analysts said the sharp correction reflects fragile market sentiment near key resistance levels. According to market experts, a sustained fall below the 23,500 mark on the Nifty could trigger further weakness, with the next support zone seen around 23,300–23,200. On the upside, the 23,750–23,800 range is expected to act as an immediate resistance area, followed by the crucial 24,000 level.
Broader markets also ended in the red. The Nifty MidCap 100 index dropped 1.33 per cent, while the SmallCap index slipped 0.85 per cent.
Among heavyweight stocks, shares of Reliance Industries fell more than 2 per cent, while ITC Limited declined 1.71 per cent, adding pressure on the benchmark indices.
However, information technology stocks showed resilience despite the broader market weakness. The Nifty IT index gained over 0.60 per cent as investors continued to favour technology companies following a rally in US tech stocks and weakness in the Indian rupee, which could benefit export-driven IT firms.
Market experts also linked the cautious mood to the latest monsoon forecast issued by the India Meteorological Department, which projected rainfall at 90 per cent of the long-period average, raising concerns among investors about the broader economic outlook.
With inputs from IANS