Mumbai: Indian stock markets ended sharply lower on Thursday, October 1, as concerns over rising energy prices, unstable global bond yields and possible interest rate increases kept investors cautious. The decline extended the market’s to four consecutive sessions.
The Sensex fell 570.59 points, or 0.79 per cent, to close at 71,909.70. The Nifty 50 dropped 198.50 points, or 0.88 per cent, and settled at 22,421.95, slipping below the 22,450 mark.
Rising Energy Prices Weigh On Markets
Higher energy costs raised worries about inflation and the future direction of interest rates. Movements in global bond yields added to uncertainty, prompting investors to reduce exposure across several sectors.
The selling reflected continued caution over global financial conditions, with investors looking for clearer signs of stability before increasing their market exposure.
Nifty Support And Resistance Levels
Market experts said the Nifty had fallen below its weekly 200 simple moving average zone of 22,600 to 22,580. The index also came close to testing support at 22,400.
If this level fails to hold, analysts see the possibility of further declines towards 22,200 and 22,000. On the upside, the 22,600 to 22,800 range is now the immediate resistance zone.
Auto Stocks Lead Declines
Bajaj Auto, and Shriram Finance were among the biggest Nifty losers, highlighting pressure on automobile and financial shares.
The Nifty Auto, Nifty Media, Nifty Metal and Nifty FMCG indices recorded the sharpest sectoral declines. Information technology shares offered some support, making Nifty IT the best performing sector for the session.
Midcap And Smallcap Shares Fall
Weakness also spread beyond large companies. The Nifty MidCap 100 declined 1.01 per cent, while the Nifty Smallcap 100 lost 0.97 per cent.
Analysts suggested that investors with a longer investment horizon could consider gradual purchases during declines. Those trading over shorter periods may prefer waiting for stability in the market and policy measures that help ease uncertainty across global financial markets.