Sensex closes almost flat, Nifty ends above 24,580. What lies ahead?
Indian stock markets closed nearly unchanged as strong earnings countered Middle East worries. The Sensex and Nifty saw minimal gains while broader markets showed mixed performance. Titan shares led Sensex gainers, while SBI shares experienced a notable decline. Geopolitical uncertainty tempered risk appetite, though corporate results offered support. Analysts suggest a cautious technical outlook…
India's stock market concluded the week with little movement, as the Sensex and Nifty indices showed minimal change in comparison to the previous week. Strong first-quarter earnings partially compensated for the impact of rising Middle East tensions. The Sensex climbed 43 points to 78,542, while the Nifty 50 rose 13 points to 24,584 on Monday.
Other market segments experienced mixed results, with the Nifty Smallcap 100 down 0.3% and the Nifty Midcap 100 up 0.6%. Among individual stocks, Titan shares led the gains with a more than 3% increase, followed by Bajaj Finance and Bajaj Finserv, which both rose by around 2%. Notably, State Bank of India (SBI) shares retreated more than 2% after initially gaining.
Bharti Airtel, NTPC, and ITC shares also saw declines of 1-2%. Within sectors, the Nifty Realty and Nifty Financial Services indices (excluding banks) both gained over 1% to lead the market's advance, while the Nifty PSU Bank index fell by around 2%. Overall, the market showed slight positive breadth, with 1,739 stocks advancing, 1,703 declining, and 118 remaining unchanged.
Looking ahead, Vinod Nair, Head of Research at Geojit Investments, cautioned that markets remained sensitive to the ongoing uncertainty surrounding the Strait of Hormuz. Despite corporate earnings providing some support, the market's tight leash remains due to the continued unknowns. Internationally, weaker-than-expected US jobs data has softened the argument for the Federal Reserve to raise interest rates, shifting attention to upcoming inflation data and bond yields.
A softer yield environment could potentially boost interest in emerging markets and encourage more Foreign Institutional Investors (FIIs) to participate.
On the technical side, while the fundamental outlook for Nifty remains slightly bullish, the charts suggest caution. Friday's failure to generate sufficient bearish momentum has reduced the likelihood of a drop below 24,400 or a confirmation of a bearish trend reversal. Oscillators indicate a consolidation pattern within the 24,400-24,775 range, with 24,570-24,500 acting as support and 24,650-24,690-24,730 as potential upside break points.
As always, it's important to note that the expert opinions provided are their own and do not necessarily reflect the views of The Economic Times.
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