Nifty, Sensex end volatile session marginally lower amid global uncertainties
Mumbai, May 21
The equity markets witnessed a highly volatile trading session on Thursday, with benchmark indices recovering from steep intraday losses but eventually ending slightly lower amid geopolitical concerns, elevated crude oil prices and expiry-related volatility.
The NSE Nifty 50 index closed at 23,654.70 with a decline of 4.30 points or 0.02 per cent, while the BSE Sensex settled at 75,183.36, down by 135.03 points or 0.18 per cent.
Market experts said investor sentiment remained cautious due to concerns related to the Middle East situation, crude oil prices, currency movements and bond yield pressures.
Vikram Kasat, Head Advisory at PL Capital, said, "In today's trading session, Indian markets have had a highly volatile trading session, with benchmark indices managing to make some recovery following steep intraday falls, but eventually closing on the negative side amid worries over geopolitical issues and expiry-related volatility."
He added that investors also closely tracked developments related to the U.S.-Iran situation and crude oil movements.
"The market mood was subdued due to geopolitical concerns in the Middle East, rising crude oil prices, currency movements, and concerns about bond yield levels. Even though there were pressures on frontline indices, buying support from defensive stocks and other sectors ensured that losses were moderated," he stated.
According to him, the near-term market direction is likely to remain dependent on geopolitical developments, crude oil prices, foreign institutional investor (FII) flows and domestic macroeconomic indicators.
In the sectoral indices on NSE, a mixed trend was visible. Nifty Realty gained 1 per cent, while Nifty Auto rose 0.28 per cent, Nifty PSU Bank advanced 0.22 per cent, Nifty Metal gained 0.20 per cent and Nifty Pharma surged 0.19 per cent.
On the losing side, Nifty IT declined 0.56 per cent, Nifty Media fell 0.35 per cent and Nifty Private Bank index slipped 0.15 per cent.
Meanwhile, Brent crude oil prices moderated marginally compared to Wednesday but remained elevated, trading at USD 105 per barrel at the time of filing this report.
In the commodities market, gold prices traded flat at Rs 1,59,538 per 10 grams for 24 karat gold. Silver prices, however, declined 0.80 per cent to close at Rs 2,71,950 per kilogram.
Asian markets showed mixed trends on Thursday. Japan's Nikkei 225 index surged 3.14 per cent to close at 61,744, while Taiwan's weighted index gained more than 3 per cent to settle at 41,368. South Korea's KOSPI index rallied around 8 per cent to close at 7,815.
Singapore's Straits Times index also ended in the green at 5,045, while Hong Kong's Hang Seng index closed down by 1 per cent at 25,395.
— ANI
Reader Comments
Volatile session but recovery dikh raha hai. Good to see PSU banks and auto holding up. But IT index falling is concerning – maybe because of global slowdown fears. Let's hope crude prices don't go higher. 🤞
Market ko samajhna mushkil hai bhai. Kal lag raha tha sab kuch upar jayega, aaj neeche. But one thing is clear: geopolitics is the new normal now. Investors should focus on domestic stories like realty and pharma. Gold bhi flat hai, so that's something. 🏠💊
Honestly, I think the volatility is being exaggerated by expiry week. The recovery from intraday lows shows underlying strength. But yes, crude at $105 is scary for our import bill. Government should look at strategic reserves. 🇮🇳💪
Interesting how Asian markets like Nikkei and KOSPI rallied while India was subdued. Shows our market is more influenced by domestic factors like FII flows. Need to watch the Middle East situation closely. Patience is key here.
Jitna bhi volatility ho, Indian market ka long-term story strong hai. But short-term traders ko careful rehna chahiye – expiry aur geopolitical news ka combination dangerous ho sakta hai. Better to wait for clarity. 📊🧘
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