Indian benchmark indices experienced a mixed close, with the Sensex rising and the Nifty falling, as elevated crude oil prices and persistent geopolitical uncertainty in the Middle East continue to temper investor sentiment.
Key Points
- The BSE Sensex closed 113.61 points higher at 78,079.96, while the NSE Nifty dipped 40.10 points to 24,395.85, marking its third consecutive day of decline.
- Elevated crude oil prices and geopolitical uncertainty in the Middle East are key factors contributing to investor caution and preventing a stronger market rally.
- Despite expectations of a less restrictive US monetary policy, domestic investors remain wary due to energy market volatility.
- Market experts anticipate Indian equities to remain range-bound until there is greater clarity on energy markets, with corporate earnings driving performance.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,002.50 crore, indicating continued cautious sentiment.
Benchmark indices ended mixed on Thursday, with the Sensex rising nearly 114 points and the Nifty sliding over 40 points, as elevated crude prices and geopolitical uncertainty made investors cautious.
Fag-end buying helped the BSE Sensex end the session in the positive territory. The 30-share index settled 113.61 points, or 0.15 per cent, higher at 78,079.96.
During the day, the benchmark hit a high of 78,119.39 and a low of 77,665.89, gyrating 453.5 points.
Nifty's Decline and Market Movers
The 50-share NSE Nifty was marginally down 40.10 points, or 0.16 per cent, to end at 24,395.85, registering its third day of decline.
From the Sensex pack, InterGlobe Aviation, NTPC, Bharat Electronics, Larsen & Toubro, Hindustan Unilever and Eternal were among the winners.
ICICI Bank, Titan, Reliance Industries, UltraTech Cement and Infosys were among the major laggards.
Impact of Global Factors
Elevated crude oil prices remain a key overhang, with geopolitical uncertainty in the Middle East preventing a stronger risk-on move, Vinod Nair, Head of Research, Geojit Investments Limited, said.
Brent crude, the global oil benchmark, declined 1.44 per cent to $87.70 per barrel.
"The market continues to exhibit resilience but lacks a strong directional trigger. While expectations of a less restrictive US monetary policy have improved the global investment backdrop, elevated crude prices and geopolitical uncertainty are keeping domestic investors cautious," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
Until there is greater clarity on energy markets, Indian equities are likely to remain range-bound, with corporate earnings and stock-specific developments continuing to drive market performance, he added.
Asian and US Market Performance
In Asian markets, South Korea's Kospi climbed 3.56 per cent and Japan's Nikkei 225 ended 1.16 per cent higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,002.50 crore on Wednesday, according to exchange data.
