Indian equity markets trade flat after fresh US strikes in Iran
Mumbai, May 26
Indian equity markets traded flat in morning trade on Tuesday after fresh US strikes in southern Iran targeting boats attempting to lay mines and missile launch sites.
In early trade, Sensex was at 76,339.29, down 150 points or 0.20 per cent, while Nifty slipped 45 points or 0.19 per cent to 23,986.40. Earlier in the day, the benchmark indices opened at 76,224.14 and 24,004.10, respectively.
Among sectoral indices, IT, chemicals, media, PSU banks and metal stocks traded in positive territory.
Nifty IT rose 0.61 per cent, while Nifty Chemicals gained 0.58 per cent and Nifty Media advanced 0.54 per cent.
On the downside, consumer durables, healthcare, cement and realty indices were under pressure. Nifty Consumer Durables emerged as the top sectoral loser, falling 0.57 per cent, while Nifty Healthcare, Nifty Cement and Nifty Realty declined up to 0.3 per cent.
From the Nifty basket, InterGlobe Aviation (IndiGo) declined over 1 per cent, emerging as one of the top laggards on the benchmark indices. Other notable losers included SBI Life Insurance Company, Max Healthcare Institute, Titan Company, Bharti Airtel, Eternal Ltd and Trent, which fell up to 1 per cent.
In the broader market, small-cap and mid-cap indices outperformed. Nifty Smallcap 100 climbed 0.59 per cent, while Nifty Midcap 150 gained 0.13 per cent.
Meanwhile, the volatility tracker India VIX slipped 1.43 per cent.
Market experts said that despite ongoing negotiations aimed at ending the West Asia conflict, there are no indications of an immediate resolution.
They noted that the recent US "self-defence strikes" in southern Iran have temporarily dampened sentiment, although markets are not viewing the development as the beginning of another phase of military escalation.
According to experts, investor risk appetite remains strong, with markets rallying whenever there are signs of easing tensions and a decline in crude oil prices.
"The sharp rally in the previous session reflected optimism about the resilience of the domestic economy," they added.
However, experts believe that a resolution of the conflict and a further decline in crude oil prices could help ease macroeconomic pressures facing the economy.
Meanwhile, crude oil prices rose, with international benchmark Brent crude gaining 1.17 per cent to $98.39 a barrel, while US West Texas Intermediate (WTI) crude climbed more than 3 per cent to $93.90 per barrel.
— IANS
Reader Comments
IT sector rising is good for job market. But why healthcare falling? We need our pharma and healthcare stocks to remain strong, especially with all the health challenges we face. 🤔
As an expat in Mumbai, these market swings are becoming a monthly affair. The India VIX dropping is a positive sign though. Retail investors need to stay calm and not panic sell.
IndiGo falling makes sense - airlines always get hit when oil prices rise. But our supply chains for pharma and electronics also depend on stable West Asia. Time for India to reduce oil dependence.
Small caps and mid caps outperforming shows domestic investors are confident. But these global tensions could bring FII selling. Need our government to focus on diplomacy now. ✌️
Honestly, the market is ignoring ground realities. US strikes in Iran could escalate anytime. But our traders seem to think it's just noise. Hope they're right, otherwise many retail investors will suffer.
The resilience is impressive. Sensex only down 150 points despite Brent at $98. Indian economy has strong fundamentals. But don't underestimate oil - rising prices will eventually hit our current account deficit.
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