Indian Stock Market Continues Three-Day Losing Streak Amid Global Uncertainty

The Indian stock market faced pressure for the third consecutive session on Wednesday, September 2. The benchmark indices broke below key levels due to renewed fighting in the Middle East, which pushed oil prices higher and stoked inflation concerns.

Elevated crude oil prices also drove global bond yields to multi-year highs, while a weak global market setup further weighed on investor sentiment.

The Nifty 50 closed 0.59% lower at 23,914, while the Sensex ended 0.62% lower at 76,469. The selling pressure extended to the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 declining 0.53% and 0.37%, respectively.

Renewed geopolitical tensions between the US and Iran were a key driver behind the market sell-off. The conflict escalated after the US military launched fresh strikes against Iranian targets around the Strait of Hormuz, which President Donald Trump said were in retaliation for Tehran's alleged attempts to lay mines in the strategic waterway.

Rupak De, Senior Technical Analyst at LKP Securities, stated that the Nifty 50's breakdown from a rising channel indicates sustained selling pressure. De advised maintaining a sell-on-rise strategy as long as the index remains below 24,000.

Ajit Mishra, SVP, Research at Religare Broking, noted that the sharp decline has pushed the Nifty closer to its initial downside target and support around the 23,800 level. He sees the previous support level of 24,000 acting as immediate resistance.