Indian benchmark indices Sensex and Nifty concluded Wednesday’s trading session flat, as escalating geopolitical tensions between the US and Iran in West Asia triggered profit booking in key sectors and dampened overall investor sentiment.
Photograph: Shailesh Andrade/Reuters
Key Points
- Sensex and Nifty pared early gains to close flat, influenced by renewed hostilities between the US and Iran.
- Profit booking was observed in metal, oil & gas, and telecom shares during the latter half of the trading session.
- Weak global market trends and continuous foreign fund outflows contributed to cautious investor sentiment.
- Banking majors like Hindustan Unilever, Axis Bank, and ICICI Bank showed resilience, limiting the overall market downside.
- Broader markets, including BSE SmallCap Select and MidCap Select indices, closed lower, reflecting widespread pressure.
Benchmark indices Sensex and Nifty pared gains to settle flat on Wednesday, dragged by last-hour selling in oil and gas, metal and telecom shares as renewed hostilities between the US and Iran unsettled investor sentiment.
The 30-share BSE Sensex closed higher by 64.42 points, or 0.09 per cent, at 73,983.18.
The index opened higher and jumped 694.25 points, or 0.93 per cent, before hitting a high of 74,613.01 in the first half.
However, profit booking in metal, oil & gas and telecom shares in the second half of the session trimmed most of its intraday gains.
Market Performance Overview
Retreating from its early highs, the 50-share NSE Nifty closed lower by 27.15 points, or 0.12 per cent, at 23,214.95.
The benchmark index hit a high of 23,425.35 and a low of 23,184.60 in intraday trade.
Weak trends in global markets and relentless foreign fund outflows made investors cautious, according to analysts.
Among the Sensex constituents, Hindustan Unilever, Axis Bank, Kotak Mahindra Bank, ICICI Bank, ITC and HDFC Bank were the biggest winners.
Eternal Ltd, Tata Steel, Bajaj Finserv and Titan were among the laggards.
Geopolitical Impact on Sentiment
“Investor sentiment remained fragile amid rising geopolitical tensions in the Middle East following fresh developments involving the US and Iran, which initially pushed Brent crude prices higher.
“However, resilience in select heavyweight counters, particularly banking majors, helped limit the downside,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
Broader markets closed lower as the BSE SmallCap Select index declined 1.37 per cent and MidCap Select index dropped 1.35 per cent.
Sectorally, The MidSmall Private Banks Quality Tilt tanked 2.20 per cent, followed by Telecommunication (1.98 per cent), Metal (1.87 per cent), Oil & Gas (1.77 per cent), Realty (1.76 per cent), Energy (1.71 per cent), Power (1.64 per cent) and Utilities (1.55 per cent).
FMCG, Private Banks Index and Top 10 Banks were the winners.
Global Market Trends and FII Activity
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.
The Kospi tanked 4.52 per cent and the Nikkei 225 declined 1.89 per cent.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,566.03 crore on Tuesday, according to exchange data.
“Indian equity markets ended modestly lower as renewed hostilities between the United States and Iran unsettled investor sentiment and revived concerns over the durability of the fragile ceasefire.
“The Nifty traded positively through much of the first half before surrendering gains later in the session, as geopolitical uncertainty continued to limit risk appetite and cap any meaningful recovery,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Global markets remained under pressure after fresh military exchanges between the US and Iran heightened concerns over a renewed escalation in the Middle East, he added.
Brent crude, the global oil benchmark, dipped 0.20 per cent to $91.27 per barrel.
