Indian equity markets came under significant pressure on Wednesday as benchmark indices extended their losing streak amid rising geopolitical tensions in West Asia and a spike in crude oil prices. The selloff reflected a broader risk-off sentiment across global markets, with Asian equities also trading weak as investors assessed the potential economic impact of escalating military conflict in the region.

The Sensex closed the session down 1,122.66 points, or 1.4 percent, at 79,116.19, marking its fourth consecutive day of losses. During intraday trade, the index had plunged as much as 1,795.65 points to 78,443.20 before recovering some ground in the afternoon session. However, renewed selling pressure in the final hour of trading erased much of the recovery, pushing the index sharply lower by the close.

Similarly, the Nifty 50 declined 385.20 points, or 1.55 percent, to settle at 24,480.50. The index recorded its third straight day of losses and ended at its lowest closing level in six months. In intraday trading, the Nifty had slipped as much as 560.30 points to touch 24,305.40, reflecting broad-based selling across sectors.

Market participants attributed the decline largely to global developments, particularly the intensifying conflict in West Asia. Iran reportedly continued strikes on several Gulf countries in response to joint military action by Israel and the United States. In turn, the US and Israel carried out fresh attacks on Iran, heightening geopolitical uncertainty in a region that remains critical to global energy supply.

Rising tensions in oil-producing regions have pushed crude oil prices higher, which tends to be negative for India’s macroeconomic outlook given the country’s heavy dependence on imported crude. Higher oil prices can widen the current account deficit, add inflationary pressure, and potentially limit the central bank’s policy flexibility. These macro concerns often translate into cautious positioning by institutional investors.

Technical indicators also suggest weakening market momentum. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the Nifty is approaching an important technical support zone between 24,350 and 24,300. This range had previously acted as a strong base for the index in August 2025.

Shah noted that a sustained break below this level could accelerate downside momentum, potentially dragging the index towards 24,100 and even 23,800 in the short term. On the upside, he indicated that the 24,650–24,700 range is likely to act as immediate resistance for the index.

Other market technicians echoed similar concerns about weakening momentum. Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty has slipped below its rising trendline on the daily chart, signalling a shift in sentiment towards caution.

He highlighted that the Relative Strength Index (RSI) has entered a bearish crossover, reinforcing the view that short-term momentum remains weak. According to De, the next important support for the index lies in the 24,200–24,000 zone, while resistance is seen around 24,700. In the near term, he suggested that market participants may adopt a “sell on rise” strategy until clearer signs of stability emerge.

The banking sector also mirrored the broader market weakness. The Bank Nifty index opened with a gap-down and remained largely range-bound throughout the trading session before closing 1.81 percent lower at 58,755. Technical indicators suggest that the index has now slipped below its 100-day exponential moving average, which could signal weakening intermediate-term momentum.

Shah further pointed out that the Bank Nifty has filled a 1,106-point gap that was created on February 3 following the announcement of an India–US trade agreement. Immediate support for the index is placed between 58,200 and 58,100. A sustained move below this zone could open the door for further declines towards 57,700 and 57,300 in the near term, while resistance is likely around 59,200–59,300.

The broader market reaction reflects the increasing sensitivity of equities to geopolitical risks, particularly those affecting energy markets. For India, rising crude prices can ripple through multiple sectors including aviation, logistics, chemicals, and paint companies that rely heavily on petroleum derivatives. At the same time, oil marketing companies may face margin pressure if fuel price adjustments lag global movements.

From a market structure perspective, the recent decline also suggests a phase of consolidation after a prolonged rally in previous months. Global investors tend to reduce exposure to emerging markets during periods of geopolitical stress, leading to short-term volatility in benchmark indices.