Indian Markets Continue To Slide Amid Geopolitical Concerns

The Indian stock market witnessed its third consecutive session of decline amid geopolitical worries. The Sensex closed 102.20 points down, while the Nifty dropped by 37.95 points. IT sectors gained, though auto sectors saw losses. Analysts observe a cautious market sentiment driven by global trade uncertainties and domestic earnings outlook.

The Indian stock market extended its decline into a third consecutive session on Wednesday, driven by investor concerns over mounting geopolitical risks. The Sensex concluded the day at 84,961.14, a drop of 102.20 points or 0.12%, while the Nifty fell 37.95 points or 0.14% to settle at 26,140.75.

Notably, the Indian rupee strengthened by 24 paise, trading at 89.84 against the US dollar. In sectoral performance, the Nifty IT index emerged as a standout performer with a 1.87% spike, whereas the Nifty Auto index experienced a 0.80% decline.

Opening lower, the Nifty 50 stood at 26,143.10, down by 35.60 points or 0.14%, with the BSE Sensex suffering a sharp decline of 442.94 points or 0.52% to open at 84,620.40. Shrikant Chouhan of Kotak Securities noted the market's non-directional behavior, highlighting support near the 26,070/84,600 levels and resistance at 26,200/85,100.

Vinod Nair from Geojit Investments Limited cited cautious domestic sentiment due to upcoming Q3FY26 earnings and U.S. employment data, alongside global trade uncertainties. Nair also pointed to China's export restrictions on rare earth elements as a factor complicating the macroeconomic landscape. A 'buy-on-dips' strategy in large-cap themes remains advisable within this context.

LKP Securities' Senior Technical Analyst, Rupak De, pointed out the Nifty's volatile yet narrow trading range, marked by support at the 21 EMA. The index is expected to maintain its sluggish trend barring a decisive move beyond the 26,000 to 26,300 range.

(With inputs from agencies.)