The three-day rally in the Indian stock market ended on Friday, September 19, as traders locked in gains. Adding to the cautious sentiment were rising geopolitical concerns after the United States announced the revocation of the sanctions waiver for Iran’s Chabahar Port, effective September 29.
Markets opened lower and showed no signs of reversal as the day progressed, with the Nifty 50 closing the session down 0.38% at 25,327, while the S&P BSE Sensex ended 0.47% lower at 82,626. However, both indices posted weekly gains of over 1%.
The broader markets managed to tick higher, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 0.17% and 0.12%, respectively. For the week, both indices surged nearly 3%.
Sector-wise, the Nifty PSU Bank led the gains, rising 1.28%, followed by Nifty Realty and Nifty Pharma, which added 0.55% and 0.50%, respectively. The Nifty Bank index also advanced 0.42%. On the losing side, Nifty Private Bank was the top laggard, slipping 0.65%, followed by Nifty Consumer Durables, which also dropped 0.65%.
Market participants attributed the pressure to the US administration’s fresh decision to withdraw the special waiver granted to India in 2018 for operations at the Chabahar Port in Iran.
According to a statement issued by the US Department of State, operators of the Chabahar Port will face American sanctions beginning September 29. The move, seen as another hard step by Washington against India, raised concerns for New Delhi’s strategic and trade interests.
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