The Indian stock market benchmarks, the Sensex and the Nifty 50, ended with nominal gains on Monday, 20 April, as a jump in crude oil prices amid persisting uncertainties about the US-Iran conflict kept sentiment fragile.
The Sensex closed at 78,520.30, rising modestly by 27 points, or 0.03%, while the Nifty 50 ended at 24,364.85, gaining 11 points, or 0.05%. However, mid and small-cap segments ended in the red, underperforming the benchmarks. The Nifty Midcap 100 index slipped 0.18%, while the Nifty Smallcap 100 index dropped 0.45%.
The two-week ceasefire between the US and Iran will end on Tuesday. According to media reports, Iranian forces attacked some US military ships with drones after the US seized an Iranian-flagged cargo ship that tried to get around a naval blockade near the Strait of Hormuz.
According to media reports, Iran has said that the Strait of Hormuz will remain closed until the United States ends its naval blockade of Iranian ports.
“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, noted.
“With the ceasefire set to expire this week, market participants remain cautious, awaiting further developments. Oil prices surged but stayed below the $100 mark, while the rupee weakened, raising concerns about inflationary pressures. Despite these headwinds, investors are giving some weight to the progressing Q4 earnings season. This has led to selective accumulation in growth-oriented sectors such as power, capital goods, and consumer durables, which continue to attract attention for their long-term potential,” Nair added.
As many as 31 stocks ended in the red in the Nifty 50 index, among which Jio Financial Services, Hindalco Industries, and Tata Motors Passenger Vehicles ended as the top laggards.
On the other hand, Trent, JSW Steel, and SBI ended as the top gainers in the Nifty 50 pack of stocks.
Volatility index India VIX jumped over 9% to reach near 19, reflecting increased market nervousness due to global uncertainties.
Most sectoral indices ended lower, with Nifty IT and Realty falling over half a per cent each.
However, Nifty Media and PSU Bank indices rose almost 1% each. Nifty Bank and Financial Services indices ended with nominal gains of 0.03% and 0.06%, respectively.
Among the global peers, Germany’s DAX, France’s CAC, and the UK’s FTSE declined by 1% during the session. Brent crude oil prices jumped 6% to trade near the $95 a barrel mark, weighing on market sentiment.
As per Sudeep Shah, the head of technical and derivatives research at SBI Securities, 24,230–24,200 may act as an important support area for the Nifty 50, while on the upside, the 24,480–24,500 zone will continue to act as a crucial resistance.
“A decisive and sustainable breakout above 24,500 could pave the way for a further upside momentum, with the index potentially heading towards the 24,650 level in the near term,” said Shah.
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