Sensex, Nifty end flat amid Strait of Hormuz uncertainty
Mumbai, Aug 10
Benchmark equity indices ended marginally higher on Monday after trading in a narrow range for most of the session, as investors remained cautious amid uncertainty surrounding a potential deal to reopen the Strait of Hormuz.
Gains in select sectors helped markets stay positive despite weakness in PSU banks and FMCG stocks.
The Nifty settled 13.15 points, or 0.05 per cent, higher at 24,583.80, while the Sensex advanced 43.27 points, or 0.06 per cent, to close at 78,542.44.
Commenting on Nifty technical outlook, experts said that the 24,600-24,7000 zone continues to act as the immediate resistance area.
"A sustained breakout above 24,700 could strengthen buying momentum and open the way towards the 24,800 level," an analyst stated.
"On the downside, 24,500 remains the immediate and crucial support, and holding above this level will be important to prevent renewed weakness. A decisive break below 24,500 could increase selling pressure and expose the index to the 24,400-24,300 region," a market expert mentioned.
Both indices moved within a narrow range throughout the session before ending slightly in the green.
Market sentiment remained cautious as traders monitored global developments that could influence crude oil prices and broader risk appetite.
The muted movement in benchmark indices reflected a wait-and-watch approach among investors.
Among Nifty constituents, State Bank of India, ITC and Eternal emerged as the top laggards, weighing on the headline indices.
The broader market delivered a mixed performance. The Nifty MidCap index gained 0.62 per cent, while the Nifty SmallCap index slipped 0.27 per cent.
On the sectoral front, the Nifty PSU Bank index was the worst performer of the day, declining nearly 2 per cent.
The Nifty Pharma and Nifty FMCG indices also ended lower.
In contrast, real estate stocks attracted buying interest, with the Nifty Realty index emerging as the top-performing sector during the session.
Experts said that despite the positive closing, the lack of strong directional movement underlined prevailing investor caution as market participants awaited greater clarity on global geopolitical developments and their potential impact on energy markets and economic growth.
"Market momentum is likely to remain constructive this week, with the final leg of the Q1FY27 earnings season set to drive both stock-specific and broader market action," a market expert stated.
— IANS
Reader Comments
The market is stuck in a 200-point range. 24,500 support is strong, but without a breakout above 24,700, we won't see any fresh buying. FIIs are waiting for clarity on global cues, and domestic retail investors are holding their positions. Just a wait-and-watch game right now.
Living in Mumbai and watching the PSU bank index drop 2% today while realty gains... classic India market story. SBI dragging the Nifty shows how much weight the big banks carry. The Q1 earnings season is the real driver here, not just Hormuz. Long-term investors should stay the course.
Flat market but midcaps up 0.6%? Sahi hai. The real action is in selective stocks while the indices take a breather. Realty doing well shows domestic demand isn't as weak as some analysts say. But yes, Hormuz uncertainty is making FIIs nervous. Have a stop-loss on your positions, folks.
This kind of sideways movement is actually healthy for the market after the run-up we've had. Corrections are needed, otherwise bubbles form. The analysis of 24,500 support is crucial—if it breaks, we could see 24,300, which would be a good buying opportunity for SIP investors. But global geopolitics is the wild card. 😬
PSU banks falling 2% is concerning—SBI, ITC and Eternal as top laggards show money moving out of defensive sectors. But 78,500 on Sensex is still a good level.
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