As tensions over the Strait of Hormuz in West Asia increased, benchmark indices in the Indian stock market fell by about 1% each, closing at a significant drop for the second day in a row on Thursday.

Due to growing selling pressure in the auto, banking, IT, and real estate sectors, the Sensex closed at 77,664, a decrease of 852 points, or 1. 09%, while the Nifty fell by 205 points, or 0. 84%, to 24,173. The big losers were Tech Mahindra, Infosys, Tata Motors Passenger Cars (TMPV), Mahindra & Mahindra, Eicher Motors, HDFC Bank, and ICICI Bank.

The Sensex lost as much as 1. 2% during the session, reaching an intraday low of 77,574, while the Nifty fell about 1%, or 243 points, to 24,134. 80.

The losses were led by the Nifty Auto, Nifty PSU Bank, Nifty Consumer Durables, Nifty Realty, and Nifty IT indices, which all fell by as much as 2% across sectors.

Conversely, defensive positions held up somewhat well, with the Nifty Healthcare and Nifty Pharma indices rising by as much as 2%.

The decline was widespread, as seen by the red finish of broader market indexes. The Nifty 100 decreased by 0. 93%, while the Nifty 200 dropped by 0. 83%. Due to general market pressures, the Nifty 500 index fell 0. 79%.

The mid-cap and small-cap sectors also experienced selling, with the Nifty Midcap 50 falling 0. 71% and the Nifty Smallcap 100 and Nifty Smallcap 50 both declining 0. 6% in terms of category.

The volatility tracker index India VIX also rose by 1. 58% to about 20.

Following uncertainty about Iran ceasefire negotiations and continued disruptions at the Strait of Hormuz, geopolitical tensions increased, and market attitude, according to analysts, deteriorated dramatically.

According to them, the risk-off mood has been exacerbated by rising crude prices, a weaker rupee, and institutional selling.

For the Nifty, market analysts said that the index met resistance close to the 24,300 mark, which had previously served as support and has now transformed into an immediate resistance band in the 24,300–24,400 range, thus limiting any additional gains.

This zone is still a vital supply area from a technological standpoint, which shows that there is ongoing selling pressure at higher prices. According to them, a firm break below the 24,100–24,000 level might hasten the fall toward the 23,800 level, while the 24,100–24,000 range now provides instant support.

Additionally, currency experts said that the rupee’s value fell below the 94 level due to a surge in demand for dollars and a move toward safe-haven assets, with increased crude prices and a strong US dollar putting additional pressure.

In the meantime, Brent crude increased by about 4% to $105. 86 a barrel due to supply concerns connected to the ongoing geopolitical tensions, while global signals remained weak.