Nifty, Sensex close flat amid elevated oil prices, IT stocks support gains
Mumbai, July 16
Indian equity benchmark indices ended largely flat on Thursday as investor sentiment remained cautious amid geopolitical uncertainties, elevated crude oil prices and weak cues from Asian markets.
The Nifty 50 closed at 24,072.75, down 5.75 points or 0.02 per cent, while the BSE Sensex ended marginally higher at 77,186.87, up 1.44 points.
Market experts said investors remained cautious despite easing inflation concerns in the United States, with corporate earnings and global developments continuing to guide market sentiment.
Vinod Nair, Head of Research at Geojit Investments Limited, said, "Indian equities concluded largely subdued as investors remained cautious amid geopolitical uncertainties, fluctuating oil prices, and weak Asian market trends. While inflation concerns weighed on financials and realty, the chemicals space emerged as a bright spot, supported by the reinstatement of import duties on select petrochemicals, alongside strong earnings traction. Meanwhile, cooling U.S. inflation eased rate concerns and offered downside support. Going forward, corporate earnings and management commentary, along with progress in monsoons, will be key catalysts, while global and inflation-related developments continue to influence market momentum."
Among sectoral indices on the NSE, Nifty Metal declined 0.33 per cent, while Nifty PSU Bank fell 0.46 per cent. On the other hand, Nifty IT, FMCG, Media, Pharma and Auto ended the session in the green.
Among the top gainers were HCL Tech, IndiGo, Wipro, Maruti, Bajaj Finance and Mahindra & Mahindra. The major losers included Zomato, SBI Life, Bajaj Finserv, BEL and HDFC Bank.
Meanwhile, global crude oil prices remained elevated. Brent crude was trading at USD 84.68 per barrel at the time of filing this report.
In the bullion market, 24-karat gold was trading at Rs 1,41,551 per 10 grams, while silver was quoted at Rs 2,19,089 per kg at the time of reporting.
Commenting on the market outlook, Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said, "The market is witnessing a phase of consolidation after recent volatility, with benchmark indices continuing to hold above their crucial support levels. As long as these levels remain intact, the broader outlook stays constructive. Traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management."
Asian markets closed on a mixed note on Thursday. Japan's Nikkei 225 declined 2.97 per cent to 66,771, while Singapore's Straits Times fell 0.37 per cent to 5,539. South Korea's KOSPI lost 6.8 per cent to close at 6,820, whereas Hong Kong's market gained 1.25 per cent to end at 24,993.
— ANI
Reader Comments
Good to see IT stocks holding up—HCL Tech and Wipro are doing well after their recent reports. But the broad market flatline tells you everyone's waiting for something. Monsoon progress is going to be huge for rural demand and FMCG stocks. Let's hope the monsoon is decent this year.
A flat market after a volatile week isn't the worst outcome. The U.S. inflation cooling is a positive sign, but we shouldn't ignore that our own domestic inflation remains sticky. Buy-on-dips might work but you need discipline. I'm cautious on financials given the margin pressures.
Kaun si company kharidein ab? 😅 Zomato and Bajaj Finserv fell today but still have strong long-term prospects. I think the real story here is how traders are just sitting on their hands. Maybe after the next batch of earnings, we'll see some direction. Till then, holding cash!
Respectfully, I think this sideways move is healthy. Markets can't just keep running up without consolidation. The IT sector gains are a good sign for exports. But I'm a bit worried the high gold prices reflect deep risk aversion. People are parking money in safe havens rather than equities.
My dad always says 'when gold is expensive, the economy is nervous' 😂 And yeah, at Rs 1.41 lakh per 10 grams, you can see the fear. But I'm optimistic about the chemicals sector revival due to import duties. That could be a nice contrarian play if you're looking for mid-cap ideas.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.