Markets trim gains on renewed geopolitical tensions in Middle East; Sensex rises 150 pts
Mumbai: Equity benchmarks Sensex and Nifty Tuesday gave up most of their sharp intra-day gains due to the emergence of profit-taking as investors turned cautious amid reports of a ceasefire violation between Iran and Israel.
In the morning trade, markets bounced back sharply, mirroring a rally in global peers and a steep decline in crude oil prices amid hopes of a potential de-escalation in the Middle East conflict.
After surging 1,121.37 points or 1.36 per cent to 83,018.16 in intra-day trade, the 30-share Sensex later trimmed most of its gains as reports surfaced of the ceasefire plan faltering. But, the benchmark still managed to settle in the green, climbing 158.32 points or 0.19 per cent to 82,055.11.
On similar lines, the 50-share Nifty rose 72.45 points or 0.29 per cent to end at 25,044.35. The index fell from an intra-day high of 25,317.70.
“Initial gains in the domestic market, driven by the ceasefire announcement and sharp drop in crude prices, were short-lived as renewed geopolitical tensions in the Middle East unsettled investor sentiment.
“Adding to the uncertainty was heightened volatility due to expiry day dynamics. Although the market attempted to break out of its recent consolidation range, persistent global risks continue to impede momentum,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex constituents, Adani Ports, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finserv and Titan were among the biggest gainers.
In contrast, Power Grid, Trent, NTPC, Maruti, HCL Tech and Bharat Electronics were among the laggards.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled significantly higher.
European markets were trading with gains in mid-session trade.
US markets ended in positive territory Monday.
Global oil benchmark Brent crude dropped 3.20 per cent to USD 69.13 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,874.38 crore Monday, while Domestic Institutional Investors (DII) bought stocks worth Rs 5,591.77 crore, according to exchange data.
On Monday, the 30-share BSE Sensex ended with a loss of 511.38 points or 0.62 per cent at 81,896.79. The Nifty dropped 140.50 points or 0.56 per cent to 24,971.90.
PTI
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