Markets tumble amid West Asia tensions, weak global cues

Indian equity benchmark indices BSE Sensex and NSE Nifty 50 declined sharply in afternoon trade on Thursday, snapping the momentum from the previous session’s rally, as fresh geopolitical tensions in West Asia rattled investor sentiment.

The 30-share Sensex plunged 938.55 points, or 1.21 per cent, to an intra-day low of 76,624.35. Similarly, the Nifty 50 dropped 237.9 points, or 0.99 per cent, to 23,759.45.

Market participants turned cautious after renewed tensions threatened the fragile ceasefire between the United States and Iran, triggering uncertainty across global markets. The geopolitical concerns weighed heavily on equities, particularly after the strong gains recorded in the previous trading session.

Adding to the pressure were weak cues from other Asian markets, which traded in the red amid global risk aversion. Persistent foreign institutional investor (FII) outflows further dampened sentiment, contributing to the downturn in domestic equities.

Analysts said investors are likely to remain watchful in the near term, tracking developments in West Asia and global market trends, which could continue to influence market direction.

Sector-wise, broad-based selling was witnessed, with heavyweights leading the decline as traders booked profits following the recent surge.

Market experts advise cautious trading as volatility is expected to persist amid geopolitical uncertainties and external headwinds.