Middle East Tensions Rattle Markets, Nifty & Sensex Slip Nearly 3%; Geopolitical Risks & Oil Supply Concerns To Drive Market Mood This Week
· Free Press Journal
Mumbai: Indian stock markets are expected to remain volatile this week as investors closely watch rising tensions in the Middle East. Analysts say global geopolitical developments, crude oil prices and key economic data will influence market sentiment.
Last week, the benchmark indices saw strong selling pressure. The BSE Sensex closed at 78,919, while the Nifty 50 ended at 24,450. Both indices declined by about 2.9 percent during the week.
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The banking sector saw a bigger fall. The Nifty Bank dropped 4.5 percent, ending near 57,783, showing weaker performance compared to the broader market.
Stock Market Slides: Sensex Falls 1,097 Points, Nifty Drops Below 24,450 Amid Banking PressureOil Supply Concerns Add Pressure
Investor concerns increased after Kuwait announced that it had stopped oil production and refining output temporarily. The decision was taken because oil tankers are currently unable to move safely through the Persian Gulf due to threats from Iran.
Officials said the step was taken as a precaution, but they did not reveal how much production has been reduced.
Experts warn that disruptions in oil supply could push global energy prices higher, which may lead to commodity-driven inflation. This could make it harder for central banks to control rising prices.
Technical Outlook For Markets
According to Rupak De, Senior Technical Analyst at LKP Securities, the market trend currently remains weak.
He said the Nifty is still trading below its previous swing low, which signals continued bearish sentiment. In the short term, the index could move towards 24,000 or even lower if selling pressure continues.
West Asia Turmoil Drags Stock Markets; Sensex Tumbles 1,123 Points, Nifty Dives 1.55%On the upside, 25,000 will act as a strong resistance level. Analysts believe the market may follow a “sell-on-rise” strategy until the index crosses this level decisively.
Sector Outlook And Key Data To Watch
Market experts say investors may find selective buying opportunities in pharma, defence, public sector enterprises and some metal and energy stocks.
However, sectors such as banking, real estate, IT and some FMCG stocks may remain under pressure.
Investors will also watch important economic data this week, including Consumer Price Index (CPI) inflation data, which will be released on March 12. The data will help measure the impact of rising oil prices on inflation.
Foreign exchange reserves data will also be monitored to assess the strength of India’s financial position.
Energy experts have also warned that if the Middle East conflict continues, oil prices could surge up to $150 per barrel, creating further pressure on global markets.