Mkts settle flat in volatile trade as crude oil rebounds

Oil Surge | Crude rally, Hormuz tensions keeps Sensex and Nifty range-bound

PTI

mumbai

Benchmark indices Sensex and Nifty closed almost unchanged in a volatile session on Monday as investors turned cautious amid mounting geopolitical headwinds and rising crude oil prices.

The 30-share BSE Sensex closed marginally up 26.76 points or 0.03% at 78,520.30. During the day, it hit a high of 78,942.45 and a low of 78,203.30, gyrating 739.15 points. The 50-share NSE Nifty edged up 11.30 points or 0.05% to settle at 24,364.85.

Among the 30-Sensex firms, Trent, State Bank of India, Asian Paints, NTPC, Bajaj Finance and InterGlobe Aviation were the major winners. Kotak Mahindra Bank, Larsen & Toubro, Bharat Electronics and HCL Tech were among the laggards.

Brent crude, the global oil benchmark, jumped 4.14% to $94.12 per barrel.

"Indian equity markets traded under pressure through the session but managed to hold their ground, closing largely flat amid mounting geopolitical headwinds. With the ceasefire nearing expiry and tensions escalating following the US seizure of an Iranian cargo vessel — prompting retaliation threats from Iran — markets lacked clear visibility on a near-term resolution," Ponmudi R, CEO of Enrich Money, said. This uncertainty was reflected in India’s VIX, which surged nearly 10%, bringing risk and volatility back into focus, Ponmudi said, adding that oil prices rebounded sharply as Iran reversed its earlier move to reopen the Strait of Hormuz.

"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 at Geojit Investments Ltd, said. With the ceasefire set to expire this week, market participants remain cautious, awaiting further developments, Nair added.

"Indian benchmark indices closed with marginal gains. Index traded with high volatility as geopolitical tensions resurfaced over the weekend. Market participants remained cautious and awaited further developments related to Middle East tensions, while the rise in crude oil prices also kept sentiment restrained," according to Bajaj Broking Research.

The BSE SmallCap Select index dipped 0.15% and MidCap Select index lost 0.12%. Power jumped 1.24%, followed by Utilities (0.88%), PSU Bank (0.70%) and Capital Goods (0.55%). However, BSE Focused IT declined 0.93%, IT (0.79%), Realty (0.70%), Telecommunication (0.66%) and Commodities (0.34%). A total of 2,593 stocks declined, while 1,810 advanced and 175 remained unchanged on the BSE.

In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended higher. Markets in Europe were trading lower. US markets ended significantly higher on Friday. Foreign Institutional Investors bought equities worth ₹683.20 crore on Friday, according to exchange data.