Indian benchmark equity indices ended flat after a highly volatile trading session on Monday, with strong gains in information technology (IT) stocks helping offset losses triggered by a sharp rise in global crude oil prices.
Key Highlights
- Sensex and Nifty recovered from steep early losses to end nearly flat as IT stocks gained strongly.
- Rising crude oil prices and West Asia tensions kept investor sentiment cautious despite robust buying in IT.
The BSE Sensex settled 47.01 points, or 0.06%, higher at 77,616.40, while the NSE Nifty50 gained 4.10 points, or 0.02%, to close at 24,211. The markets staged a remarkable recovery after witnessing steep declines in early trade amid heightened geopolitical tensions in West Asia.
Investor sentiment came under pressure as renewed military escalation between the United States and Iran pushed Brent crude prices higher, raising concerns over inflation, higher input costs, and potential disruptions to global oil supplies through the Strait of Hormuz.
Despite the weak start, buying interest in IT stocks helped benchmark indices erase most of their losses. Shares of Tata Consultancy Services (TCS) emerged as the top performer after the company reported better-than-expected quarterly earnings and indicated improving demand. Other IT majors, including HCL Technologies, Infosys, and Tech Mahindra, also recorded strong gains, providing crucial support to the broader market.
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Among other gainers, NTPC and Kotak Mahindra Bank closed in positive territory, while Tata Steel, Maruti Suzuki, InterGlobe Aviation (IndiGo), UltraTech Cement, Eternal, and Bharat Electronics (BEL) ended the session lower.
Market participants remained cautious as rising crude oil prices continue to pose risks to inflation and corporate earnings. Analysts believe geopolitical developments and global commodity prices will remain key drivers of investor sentiment in the coming sessions.
Going forward, investors are expected to closely monitor earnings announcements, crude oil movements, inflation trends, and developments in the Middle East for further direction in the equity markets.
