Indian benchmark indices, Sensex and Nifty, experienced a volatile trading session, closing almost flat as investors navigated mounting geopolitical tensions and a significant surge in crude oil prices, highlighting global economic uncertainties.
d a rebound in crude oil prices, create investor jitters over potential supply disruptions and inflation.
Photograph: Francis Mascarenhas/Reuters
Key Points
- Benchmark indices Sensex and Nifty closed marginally higher in a volatile session, reflecting investor caution.
- Mounting geopolitical headwinds and a significant surge in Brent crude oil prices (up 4.76% to USD 94.68 per barrel) influenced market sentiment.
- Analysts suggest investors are interpreting Middle East disruptions as potential negotiation tactics rather than full-scale conflict, but remain cautious ahead of a ceasefire expiry.
- Major winners among Sensex firms included Trent, State Bank of India, and Asian Paints, while Larsen & Toubro and HCL Tech were among the laggards.
- Foreign Institutional Investors (FIIs) showed buying interest, acquiring equities worth Rs 683.20 crore on Friday.
Benchmark indices Sensex and Nifty closed almost unchanged in a volatile session on Monday as investors turned cautious amid mounting geopolitical headwinds and rising crude oil prices.
The 30-share BSE Sensex closed marginally up 26.76 points or 0.03 per cent at 78,520.30. During the day, it hit a high of 78,942.45 and a low of 78,203.30, gyrating 739.15 points.
The 50-share NSE Nifty edged up 11.30 points or 0.05 per cent to settle at 24,364.85.
Market Movers and Shakers
Among the 30-Sensex firms, Trent, State Bank of India, Asian Paints, NTPC, Bajaj Finance and InterGlobe Aviation were the major winners.
Larsen & Toubro, Bharat Electronics, HCL Tech and Kotak Mahindra Bank were among the laggards.
Brent crude, the global oil benchmark, jumped 4.76 per cent to USD 94.68 per barrel.
Geopolitical Impact on Markets
“Renewed disputes over the reopening of the Strait of Hormuz injected volatility into global markets. Investors interpreted the recent disruptions in the Middle East as potential negotiation tactics rather than the onset of a full-scale conflict,” Vinod Nair, Head of Research, Geojit Investments Ltd.
With the ceasefire set to expire this week, market participants remain cautious, awaiting further developments, he added.
Global Market Performance
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended higher.
Markets in Europe were trading lower. US markets ended significantly higher on Friday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 683.20 crore on Friday, according to exchange data.
On Friday, the Sensex jumped 504.86 points or 0.65 per cent to settle at 78,493.54. The Nifty climbed 156.80 points or 0.65 per cent to end at 24,353.55.
