Sensex, Nifty trade higher in early deals amid easing West Asia tensions
Mumbai, June 22
Domestic equity markets traded higher on Monday, mirroring positive global cues amid easing crude oil prices and geopolitical concerns in West Asia.
Sensex surged over 400 points or 0.54 per cent to touch an intraday high of 77,223 in morning trade, while Nifty traded more than 100 points or 0.51 per cent higher at 24,137.
Among sectoral indices, IT stocks led the gains, with the Nifty IT index rising over 1 per cent. The Nifty MidSmall IT & Telecom and Nifty Oil & Gas indices also advanced about 0.8 per cent each.
Consumer durables, financial services, media and metal stocks traded in positive territory, while auto, pharma, realty and FMCG indices posted modest gains. In fact, all sectoral indices were trading higher in early deals. On the downside, IndiGo, Titan, Grasim Industries and Bharti Airtel were among the top losers on the Nifty.
According to market experts, the resilience in domestic equities is being supported by easing crude oil prices, rupee appreciation and moderating foreign fund outflows.
They noted that Brent crude remaining below $80 a barrel despite geopolitical uncertainties in West Asia suggests that markets do not expect a major escalation in the conflict.
Analysts said the strengthening rupee and the prospect of fresh capital inflows could lend further support to sentiment, while mid- and small-cap stocks continue to attract investor interest on expectations of stronger earnings growth. Banking stocks, particularly those in the Bank Nifty index, remain fundamentally strong, they added.
On the commodities front, international benchmark Brent crude declined over 2 per cent to $78.74 per barrel, while US West Texas Intermediate (WTI) crude fell 3 per cent to $74.98 per barrel.
— IANS
Reader Comments
IT and banking leading the charge again - no surprise there. But I'm watching the mid-cap space closely, there's real value there if you pick the right stocks. The earnings growth story in smaller companies is compelling. Good day for bulls, but never get complacent!
Ha! All sectors green but my IndiGo shares are still bleeding. 😅 Can't catch a break with aviation stocks - between fuel costs and competition, it's a tough sector. On a serious note, good to see markets stabilizing after that volatile patch. Dollar strength easing will help a lot of import-heavy industries.
I wish the media would stop attributing every market move to "geopolitical tensions" or "global cues." Strong domestic fundamentals, robust corporate earnings and consistent FII buying are what's really driving this - not just oil prices. Our markets have become more resilient because of structural reforms. Let's give credit where it's due! 🇮🇳
Good morning green! Easing crude is music to my ears. But let's be real - the West Asia situation is a powder keg. One spark and all this optimism could vanish. I'm staying cautious with my positions, booking some profits along the way. Better safe than sorry in these uncertain times.
Thankful to see my investments back in green! 🙏 As a retail investor, these swings give me anxiety. The key thing analysts mentioned - moderating foreign fund outflows - is super important. If we can stabilize the rupee, foreign money will come back. That's the real story here, not just one day's trading.
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