The index opened 139 points lower and traded in a narrow range through the first half of the session before selling pressure intensified after 2 pm.
The sharp decline followed comments by US President Donald Trump indicating that the ceasefire with Iran was over, triggering a broader risk-off sentiment across global markets. Rising geopolitical tensions also pushed Brent crude prices up nearly 6% to around $78 per barrel.Higher crude oil prices are typically viewed as negative for India, the world’s third-largest importer and consumer of oil, as they increase the country’s import bill, fuel inflationary pressures and weigh on economic growth.
Amid the late-session sell-off, the Nifty slipped from an intraday high of 24,300 to a low of around 23,805, before settling near the day’s low.
On the sectoral front, all the sectoral indices ended the day in red. Nifty PSU Bank ended the day as the top loser followed by Nifty Private Banks.
Both the indices lost over 2.5%. With regards to stocks, ONGC & Bajaj Auto ended up as top two gainers while Indigo & Jio Fin ended the day at top losers, both closing over 5% lower.
The weakness was equally evident in the broader markets. The Midcap Index slipped below its 20-day EMA for the first time since 11th June but closed above its previous swing low of 61,199, recorded on June 29. Meanwhile, the Smallcap Index plunged over 2%, marking its biggest single-day decline since May 12, 2026.Market outlook
Indian equities are likely to remain volatile in the near term as deteriorating global risk sentiment weighs on investor confidence following US President Donald Trump’s remarks on ending the ceasefire with Iran and pulling out of the memorandum of understanding (MoU).
According to Siddhartha Khemka of Motilal Oswal, investors will closely track developments in the US-Iran conflict and the safety of key shipping routes, as both are expected to influence crude oil prices and, in turn, market sentiment over the coming sessions.
From a technical perspective, Nagaraj Shetti of HDFC Securities said the Nifty’s short-term trend has turned decisively negative, although the medium- to long-term outlook remains constructive.
Shetti expects the index to find immediate support around the 23,600 mark, which could trigger a rebound if it holds. On the upside, the first major hurdle for the index is seen at 24,100.
Echoing a cautious view, Rupak De of LKP Securities said the 23,800 level will be crucial for the Nifty. A sustained break below this mark could deepen the ongoing correction, while holding above it may set the stage for a recovery.
Bank Nifty also came under huge pressure after opening with a gap-down. The index failed to move past the 58,000-58,100 resistance zone despite two attempts before witnessing heavy selling that dragged it to 56,743, down more than 2.5%.
Sudeep Shah of SBI Securities expects immediate support for Bank Nifty in the 56,300-56,200 zone. A sustained breach below these levels could push the index towards 55,800 and then 55,400. On the upside, resistance is seen in the 57,100-57,200 range.
