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Sensex Gains on Oil Price Relief, Israel-Lebanon Ceasefire Hope

Indian equity benchmarks opened flat but gained ground in early trade, buoyed by a drop in global oil prices and the announcement of a ceasefire between Israel and Lebanon by the US President. Broader market indices, particularly micro-cap and small-cap stocks, outperformed, leading the momentum. Analysts recommend a selective investment strategy, suggesting investors wait for the Nifty to sustainably break above 24,500 before initiating new long positions. Globally, Wall Street closed positive while major Asian markets traded lower during the session.

Key Points: Indian Markets Rise Amid Oil Relief, Geopolitical Ceasefire

  • Markets gain on lower oil prices
  • US announces Israel-Lebanon ceasefire
  • Micro-cap and small-cap stocks lead momentum
  • Analysts advise cautious investment approach
2 min read

Indian stock markets gain in early trade amid oil relief, Israel-Lebanon ceasefire

Sensex and Nifty trade higher as oil prices fall and a US-announced Israel-Lebanon ceasefire eases global tensions. Analysis inside.

"Initiating fresh long positions should ideally be deferred until the Nifty decisively breaks above and sustains the 24,500 level - Analysts"

Mumbai, April 17

Domestic equity benchmarks opened on a flat note on Friday, but gained afterwards, after relief in global oil prices and US President Donald Trump's ceasefire announcement between Israel and Lebanon.

Sensex opened at 77,976, down 12 points, or 0.02 per cent, while Nifty began the session up 30 points, or 0.13 per cent, at 24,165.

The indices traded mildly positive further, with the 30-scrip basket gaining 142 points or 0.18 per cent to 78,130 and the 50-share index adding 28 points or 0.11 per cent to 24,224 amid buying in FMCG, energy, and realty stocks.

HDFC Life, Wipro, Hindalco Industries, Bharti Airtel, and JSW Steel were among the top laggards in the early trading session.

Among broader indices, micro-cap and small-cap stocks led the momentum, with the Nifty Microcap 250 trading around 1 per cent higher and the Nifty Smallcap 250 rising about 1 per cent.

The US President has announced a ceasefire between Israel and Lebanon, which could ease geopolitical tensions. Earlier, he indicated that the conflict was nearing a close.

According to analysts, given prevailing global uncertainties and elevated market volatility, a cautious and selective investment approach is advisable.

"Initiating fresh long positions should ideally be deferred until the Nifty decisively breaks above and sustains the 24,500 level, which would signal improved sentiment and the potential for a more sustained bullish trend," analysts said.

On the oil front, Brent crude futures declined by up to 1.4 per cent to $97.99 per barrel, while US WTI crude traded at $92.91, down around 2 per cent.

In global equity markets, Wall Street ended on a positive note, with the S&P 500 closing 0.26 per cent higher and the Nasdaq settling 0.36 per cent up.

In contrast, Asian markets traded in the negative zone, with Nikkei down 1 per cent, KOSPI lower by about 1 per cent, and Hang Seng slipping more than 1 per cent.

On Thursday, foreign institutional investors (FIIs) remained net buyers for the second straight session in India, purchasing equities worth Rs 382 crore. Meanwhile, domestic institutional investors (DIIs) booked profits, offloading equities worth over Rs 3,400 crore.

- IANS

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Reader Comments

P
Priya S
While the gains are welcome, I'm a bit concerned. DIIs selling over 3400 crores while FIIs buy just 382 crores? That's a huge disparity. Are our own institutions losing confidence? The market feels fragile despite the green numbers.
R
Rohit P
The drop in oil prices is the best news for India. Every dollar down in Brent crude helps our CAD and inflation. Geopolitical calm in the Middle East is crucial for our energy security. Jai Hind!
S
Sarah B
Interesting to see Asian markets down while India and US are up. Shows some decoupling. Analysts' advice to wait for Nifty to break 24,500 seems prudent. Volatility is still high, better to be safe than sorry.
V
Vikram M
Bharti Airtel and Wipro as laggards is surprising. Maybe profit booking after recent runs. The focus on FMCG and realty makes sense in this environment. Defensive plays.
K
Karthik V
Respectfully, the article repeats the common analyst line of "be cautious." When markets are at all-time highs, they say be cautious. When they correct, they also say be cautious. Some actionable insight beyond that would be more helpful for common investors.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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