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Sensex, Nifty Rise on IT Gains but Trimmed by Iran-Israel Oil Fears

Indian equity benchmarks ended higher on Friday, supported by gains in IT and pharmaceutical stocks. However, the indices surrendered a portion of their intraday gains in the final hour as rising tensions between Iran and Israel pushed crude oil prices higher, dampening sentiment. The rupee also weakened sharply, closing at a record low against the US dollar. Analysts noted that markets face technical resistance and near-term direction will be heavily influenced by geopolitical developments and oil price movements.

Key Points: Sensex, Nifty End Higher as IT Stocks Gain; Oil Worries Cap Rally

  • Nifty gains 0.49%
  • IT stocks surge 2.17%
  • Oil prices rise on Middle East tensions
  • Rupee hits record closing low
  • Broader markets see profit booking
2 min read

Sensex, Nifty end higher as IT stocks gain

Indian markets closed higher led by IT stocks, but gains were trimmed by rising oil prices due to Iran-Israel tensions. Nifty ends above 23,100.

"A breakdown below 23,000 level could extend the downside towards 22,900-22,950 - Analyst"

Mumbai, March 20

The Indian stock markets ended in the green on Friday but gave up part of their gains in the final hour as rising tensions between Iran and Israel pushed oil prices higher and dampened investor sentiment.

The benchmark indices Nifty and Sensex settled off their day's highs after reports of fresh strikes between Iran and Israel triggered concerns over global energy supplies.

The Nifty closed 112.35 points, or 0.49 per cent, higher at 23,114.50, while the Sensex gained 325.72 points, or 0.44 per cent, to end at 74,532.96.

From a technical perspective, the Nifty continues to face resistance near the 23,350 zone, reinforcing a sell-on-rise structure, experts said.

"A breakdown below 23,000 level could extend the downside towards 22,900-22,950, while on the upside, 23,600 remains a strong supply zone likely to cap any meaningful recovery," an analyst stated.

During the session, markets had traded higher, but volatility increased in the last hour as crude oil prices rose amid fears of supply disruptions.

Reports suggested that tensions in the Middle East could impact global oil availability, which is a key concern for import-dependent countries like India.

Broader markets also saw profit booking towards the close. The Nifty MidCap ended 0.67 per cent higher, while the Nifty SmallCap rose marginally by 0.09 per cent, after giving up part of their intra-day gains.

On the sectoral front, realty stocks were among the worst performers, with the Nifty Realty declining around 1 per cent.

The Nifty Financial Services and Nifty Media also lagged the broader market.

In contrast, defensive and rate-sensitive sectors showed strength. The Nifty Pharma and Nifty PSU Bank emerged as the top gainers during the session. The Nifty IT end the intra-day session with a gain of 2.17 per cent.

Market experts said that market participants are expected to remain cautious in the near term, tracking geopolitical developments and movements in crude oil prices closely.

Meanwhile, global crude oil benchmark Brent rose in the latter half of the trading day, as supply concerns intensified due to the ongoing conflict in the Middle East.

Meanwhile, Indian rupee ends down 1.17 per cent at record closing low of 93.71 per US dollar.

"While geopolitical volatility remains a key driver for short-term sentiment, the USDINR technical setup remains bullish; having breached ascending channel resistance, the pair eyes a 93.75 level with support shifting to 92.90," an analyst mentioned.

- IANS

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Reader Comments

P
Priya S
The volatility in the last hour shows how fragile our market sentiment is to global events. We are always at the mercy of oil prices and Middle East tensions. Pharma and PSU banks holding up is a small relief for my portfolio.
R
Rohit P
Sensex above 74k is still a great place to be! Short-term blips due to geopolitics are normal. The underlying Indian growth story is strong. Focus on good companies, not daily headlines. 👍
S
Sarah B
As an NRI investor, the rupee depreciation is a double-edged sword. My remittances get more rupees, but it reflects poorly on the economy's stability. The 93.71 close is alarming. Hope RBI has a strategy.
V
Vikram M
The article rightly points out the "sell-on-rise" structure. Retail investors like me get excited by the green numbers, but the smart money is booking profits at every high. Realty stocks down 1% shows the pain in the housing market continues.
K
Karthik V
With elections around the corner, the market will remain range-bound. No big moves till the results. Defensive plays like Pharma are the way to go for now. Stay cautious, bhai log.
M
Michael C

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