Sensex, Nifty end flat amid West Asia tensions; rupee holds stronger
Mumbai, May 21
Indian benchmark equity indices ended marginally lower on Thursday as losses in IT, FMCG and financial stocks weighed on investor sentiment amid continued monitoring of the geopolitical situation in West Asia.
The Nifty settled at 23,654.7, slipping 4.3 points or 0.02 per cent, while the Sensex declined 135.03 points, or 0.18 per cent, to close at 75,183.36.
Commenting on technical outlook, experts said that 23,700 followed by 23,800 continues to act as the immediate resistance zone where supply pressure may remain elevated.
"Above this, 24,000 remains the major psychological resistance and a strong Call OI wall aligned with the previous swing high," an analyst stated.
"On the downside, the 23,500-23,600 range continues to act as a key support zone. Below this, 23,300 remains an important support level backed by strong Put OI concentration and previous buying demand," an analyst mentioned.
Shares of Bajaj Finance, Infosys and Tech Mahindra emerged among the top laggards on the Sensex.
On the Nifty index, Bajaj Finance, Tech Mahindra and Hindustan Unilever were among the major losers.
In the broader market, the Nifty MidCap index ended 0.04 per cent lower, while the Nifty SmallCap index outperformed the benchmarks and closed 0.63 per cent higher.
Sectorally, the Nifty FMCG, Nifty IT and Nifty Financial Services indices witnessed the sharpest declines during the session.
On the other hand, the Realty and Cement sectors outperformed the broader market.
The Nifty Cement index surged more than 2 per cent by the close of trade, emerging as one of the strongest sectoral performers of the day.
"Looking ahead, the near-term trajectory hinges on the RBI's June policy decision, progress in US-Iran talks, and the stability of key growth indicators and the rupee," an analyst stated.
Rupee witnessed a sharp recovery towards 96.15, gaining around 65 paise or 0.68 per cent, as short covering emerged after the currency touched near 97 lows in the previous session.
Meanwhile, the volatility index, 'INDIAVIX', eased by 3.5 per cent to 17.80 levels and any further cooling in volatility may provide some comfort to the bulls."
— IANS
Reader Comments
The Nifty SmallCap index outperforming is a good sign - shows there's still some confidence in the economy at the grassroots level. But Bajaj Finance falling is a worry because it usually reflects middle-class spending power. Hope the cement sector rally sustains as it means infrastructure activity is picking up.
Rupee recovering to 96.15 from 97 is decent, but honestly, it's still weak compared to last year. The government needs to focus on reducing oil imports and strengthening trade ties with other nations, not just West Asia. Restricting imports and boosting exports should be the priority. Market remains volatile, so better to stay cautious.
As an NRI watching from the US, it's interesting how Indian markets are so tied to geopolitical events in West Asia. The drop in IT stocks like Infosys and Tech Mahindra makes sense because clients in the region might become cautious. That said, India's long-term fundamentals remain strong. I'm still bullish on Indian mid-caps.
Every time there's tension in West Asia, our markets get hammered. Can't we diversify our energy sources more? More nuclear power, more solar, less dependence on that region. These are the structural reforms needed. Also, FMCG sector falling is a bad sign for rural demand. Hope the monsoon is good this year. 🌧️
The technical analysis is helpful - 23,500 support and 24,000 resistance. But these are just numbers. The real issue is that global uncertainties are not going away anytime soon. Retail investors should focus on
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