Markets sell-off as Iran-Israel conflict spook sentiment! Sensex nosedives 860 points, Nifty closes below 22,300; tech and bank the big losers

financialexpress.com:

The Indian equity indices on Monday continued Friday’s negative spell on the back of geopolitical tension coming out of West Asia. Sensex dipped 845 points or 1.14% to close the day’s trading at 73,399.78. The Nifty 50 closed 246.90 points or 1.10% lower at 22,272.50. The losers included Shriram Finance, Bajaj Finserv, Wipro, ICICI Bank, and Larsen & Toubro. The Indian Volatility Index (India VIX) closed 8.07% higher. 

Nifty Bank closed the session 791 points lower at 47,773.25. The Nifty Midcap 100 lost 786.55 points or 1.57% to settle at 49,281. 

On the sectoral front, banks and tech stocks dragged the indices lower but oil & gas gained in the weak market. In the broader indices, smallcap and midcap stocks closed in the red. 

“Geopolitical tensions and higher-than-expected US inflation impacted investor sentiment and dragged the indices to a lower note. The major casualties were the mid-and small-cap indices due to their rich valuation and expectation of moderation in earnings growth in Q4FY24. On the other hand, the European market opened on a positive note while oil prices inched lower as market participants expected that the diplomatic efforts were likely to de-escalate tensions in the Middle East,” said Vinod Nair, Head of Research at Geojit Financial Services.

“The Nifty recently dipped below a crucial moving average, following a breakdown in consolidation. Additionally, the Relative Strength Index (RSI) indicates a bearish crossover. Short-term sentiment appears bearish, although a significant decline isn’t anticipated at present. Instead, the index is likely to fluctuate between 22200 and 22400. Sellers are expected to persist as long as the index remains below the 22400 mark,” said Rupak De, Senior Technical