Indian markets saw a volatile session, erasing early losses to end nearly flat. The Sensex closed up 77 points and the Nifty gained 6 points. Recovery was led by IT and banking stocks amid concerns over crude oil, a weakening rupee and geopolitics.
The equity markets witnessed a highly volatile trading session on Monday as benchmark indices recovered from early losses and ended nearly flat amid continued concerns over elevated crude oil prices, weakening rupee and global geopolitical uncertainty. The Nifty 50 index closed at 23,649.95 with a gain of 6.45 points or 0.03 per cent, while the BSE Sensex settled at 75,315.04, up by 77.05 points or 0.10 per cent.
Markets opened under pressure with BSE SENSEX at 74,347.68 points, down 890.31 points or 1.18 per cent, NSE NIFTY 50 opened at 23,414.20 points, losing 229.30 points or 0.97 per cent but during the session but both indices recovered later on the back of value buying in select sectors, especially information technology and banking stocks.
Expert Commentary
Vinod Nair, Head of Research at Geojit Investments, said the prolonged deadlock between the United States and Iran continued to impact investor sentiment. "The prolonged stalemate between the US and Iran continues to cast a shadow over near-term sentiment, yet the equity market managed to recover intraday losses and closed on a flat note, supported by value buying in IT and banking stocks," he said.
He added that the ongoing earnings season has provided some support to market sentiment, although investors continue to remain cautious due to rising bond yields, high crude oil prices and weakening rupee levels. "The ongoing earnings season has provided a constructive narrative, though caution persists as higher bond yields, elevated crude oil prices, and a weakening rupee reinforce inflationary concerns," Nair stated.
According to him, investors are gradually deploying money into the market instead of waiting for complete clarity, especially in export-oriented sectors. "A meaningful breakthrough in diplomatic negotiations with Iran--especially regarding uranium stockpiles and sanctions--remains critical for reducing volatility and enabling a decisive upward move in the market," he added.
Rupee Weakens to Record Low
Meanwhile, the Indian rupee weakened further and touched a fresh record low of Rs 96.34 against the US dollar on Monday as pressure on the domestic currency continued.
Sector-wise Performance
Sector-wise, a mixed trend was visible on the NSE. Nifty Auto declined 1.71 per cent, while Nifty PSU Bank fell 1.92 per cent. Nifty Media slipped 2.24 per cent, Nifty Metal declined 0.98 per cent and Nifty FMCG was down 0.30 per cent. However, the Nifty IT index emerged as the top gainer during the session, rising 2.43 per cent.
Global Cues and Commodities
Global crude oil prices remained elevated as Brent crude continued trading around USD 110 per barrel, showing no signs of easing amid ongoing geopolitical tensions.
In the commodity market, gold prices continued to rise on Monday and were trading at Rs 1,58,971 per 10 grams for 24 karat gold at the time of filing this report. Silver prices also remained firm, gaining 0.22 per cent to Rs 2,72,721 per kilogram.
Asian markets largely traded under pressure on Monday. Japan's Nikkei 225 index declined 0.76 per cent to 60,945 level, while Hong Kong's Hang Seng index fell 1.30 per cent to 25,630 level. Taiwan's weighted index also declined 0.69 per cent to 40,891 levels. Meanwhile, Singapore's Straits Times index gained marginally by 0.15 per cent to 4,996 level and South Korea's KOSPI index rose 0.30 per cent to 7,516 level. (ANI)
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