Indian markets end subdued amid geopolitical concerns
Mumbai, July 16
Indian stock markets ended flat on Thursday as investors remained cautious amid geopolitical uncertainties, fluctuating crude oil prices and weak Asian market trends, while financial stocks dragged the benchmarks lower.
Sensex settled at 77,186.87, up 1.44 points, while Nifty ended 5.75 points or 0.02 per cent lower at 24,072.75.
During the intraday trade, the 30-share index jumped as much as 0.51 per cent or 394 points to 77,579.69 from the previous close, while touching an intraday low of 77,086.42, a decrease of 0.12 per cent or about 100 points.
On the other hand, the Nifty recorded an intraday high of 24,186.50, jumping 0.44 per cent or over 108 points. It touched an intraday low of 24,050, a decrease of 0.11 per cent or 28.5 points.
Consumer-focused and sector-specific stocks outperformed. Nifty Consumer Durables index emerged as the top gainer, rising 1.48 per cent, followed by Nifty Chemicals, which advanced 1.41 per cent, Nifty Media, up 1.18 per cent and Nifty IT, which gained 0.67 per cent. Nifty Auto index also ended 0.46 per cent higher.
However, financial stocks remained under pressure.
Nifty MidSmall Financial Services index declined 1.53 per cent, while Nifty Financial Services Ex-Bank fell 1.17 per cent. Nifty Realty, Nifty PSU Bank and Nifty Private Bank indices also closed in the red.
Among the Nifty 50 constituents, Eternal, SBI Life Insurance, Bajaj Finserv, Bharat Electronics (BEL), HDFC Bank, Shriram Finance, Cipla, Grasim Industries, NTPC and Apollo Hospitals Enterprise were top losers with declining up to 3 per cent.
According to analysts, the market remained largely range-bound as investors stayed cautious amid geopolitical uncertainties, volatile crude oil prices and weak trends across Asian markets.
Going ahead, investors will closely track June quarter earnings, management commentary and the progress of the monsoon, while global developments and inflation trends are expected to remain key market drivers, according to them.
Technically, they said the Nifty attempted to extend gains towards the 24,200 level during the first half of the session but persistent selling pressure near the key resistance capped the upside, resulting in a gradual pullback.
They noted that the 24,200 level remains the immediate hurdle for the index, and a sustained move above it could open the door for further gains towards the 24,300-24,400 zone. On the downside, the 24,000 mark is seen as a crucial support.
Analysts said maintaining this level would keep the broader recovery trend intact, while a decisive break below it could trigger fresh selling pressure towards the 23,900-23,800 range.
— IANS
Reader Comments
Range-bound markets mean patience is key. I'm holding my investments and not panicking. Geopolitical issues will pass, our economy is strong. Just don't check your portfolio every day like my dad! 😄
Good to see Nifty IT and Consumer Durables doing well. The IT sector always bounces back. But analysts should stop giving these 24,000-24,200 levels every week. Market does what it wants. 😅
This is typical mid-year uncertainty. Crude oil prices and global tensions always do this to our markets. I'm more worried about small investors who panic sell at the first dip. Stay disciplined, folks! 🔄
The "geopolitical concerns" translation: We're all watching the Russia-Ukraine situation and Middle East tensions. India is relatively insulated but not completely. I just hope the earnings season brings some good news for the bulls. 📈💪
Honestly, the financial sector needs a reset. Too many regulations and uncertainty around credit growth. But consumer durables and auto doing well is a positive sign for the domestic economy. Focus on the long term, guys. 🐣
J James A Another day We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.