The Indian equity indices ended on a negative note with the Nifty slipping below 25,000 due to escalating geopolitical tensions. At the close of trading, the Sensex was down 511.38 points, or 0.62%, at 81,896.79, and the Nifty was down 140.50 points, or 0.56%, at 24,971.90. The market’s weak start was primarily influenced by the US entering the conflict in the Middle East, attacking Iranian nuclear facilities.
This move caused a global market downturn, and Indian markets were no exception. Major losers in today’s trading session were Infosys, L&T, Hero MotoCorp, M&M, and HCL Technologies. On the other hand, top gainers included Trent, Bharat Electronics, Hindalco Industries, Adani Enterprises, and Adani Ports.
Sector-wise, the performance was mixed. The IT, FMCG, and Automotive sectors saw declines of 0.5-1.5%, while the Media, Metal, and Capital Goods sectors rose by 0.5-4%. The BSE Midcap index went up by 0.2% and the Smallcap index added 0.6%.
Ajit Mishra, SVP, Research, Religare Broking, said, “Markets began the week on a volatile note, continuing the ongoing corrective phase due to Middle East tensions and weakness in IT heavyweights. Despite recovering some losses, Nifty closed at 24,971.90, down 0.56%. The past five weeks have shown a pattern where Nifty sees a decisive move on the last trading day but fails to sustain gains as the new week begins.
In the absence of major domestic triggers, global market performance and crude oil prices will set the tone.”
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted, “The Nifty showed weakness on Monday due to rising geopolitical tensions.
Nifty slips amid Middle East tensions
A downside gap and partial recovery were noted, with the index forming a small green candle on the chart, indicating a strong hurdle around the 25,100-25,200 levels.
A decisive move above these levels could renew buying enthusiasm.”
Rupak De, Senior Technical Analyst at LKP Securities, added, “The Nifty recovered after a gap-down opening, helped by a pullback in crude oil prices. Although it ended on a negative note, the Nifty managed to stay above the 24,850 support level. Sustaining above this level may offer buying opportunities, with a potential move towards 25,350 in the short term.”
Prashanth Tapse, Senior VP (Research), Mehta Equities, said, “The US entry into the Israel-Iran conflict heightened market tension, leading to panic selling.
Rapidly rising oil prices could negatively impact the local currency and lead to increased inflation. Yet, despite global uncertainty, FIIs have been net buyers, indicating strong domestic fundamentals.”
Vaibhav Vidwani, Research Analyst at Bonanza, noted, “The market reflected cautious sentiment due to escalating geopolitical tensions. Defensive sectors like Defence and Media outperformed, while IT and Auto sectors lagged.
Bharat Electronics hit a 52-week high, showcasing investor preference for safer assets.”
Aditya Gaggar, Director of Progressive Shares, said, “The index opened gap-down and remained volatile throughout the day. Media and Metal were top performers, while IT and Auto sectors fell behind. Broader markets experienced a recovery, with gains in the Mid and Small Cap segments.
Technically, the Index’s Harami Candlestick pattern indicates potential indecision.”
Vinod Nair, Head of Research, Geojit Investments, added, “Last Friday’s market expectations were disrupted by the US airstrike on Iran, leading to a sharp rise in crude oil prices and consolidation in the domestic equity market.”
In conclusion, the market sentiment remains cautious amid the heightened geopolitical tensions. Future market direction will likely depend on global developments and crude oil price movements. Investors are advised to remain selective and careful during this turbulent period.
