Mumbai— Indian equity markets ended Tuesday in positive territory, despite giving up most of their early gains amid fresh geopolitical jitters surrounding the ceasefire between Iran and Israel.
The markets opened strong, with both the Sensex and Nifty rising over 1 percent in early trade, buoyed by optimism over the announced truce. However, investor sentiment turned cautious as reports emerged suggesting a possible breach in the ceasefire agreement, triggering volatility.
The Sensex surged to an intraday high of 83,018.16 but later pared gains to close at 82,055.11, up 158.32 points or 0.19 percent. The Nifty also saw significant swings, moving between 25,317.70 and 24,999.70 before ending the day at 25,044.35, a gain of 72.45 points or 0.29 percent.
Analysts attributed the initial market enthusiasm to the ceasefire announcement and falling crude oil prices. However, concerns about escalating tensions in the Middle East soon tempered that optimism.
“The Nifty’s inability to break past the 25,200-resistance level shows that bears are still active,” said Ajit Mishra, Senior Vice President at Religare Broking. “Traders should maintain a cautiously optimistic approach, with a focus on stock selection guided by sector-specific trends.”
Among the top gainers in the Nifty pack were Adani Ports, Shriram Finance, Grasim Industries, and Tata Steel — each rising up to 2.89 percent. On the losing side, ONGC, IndusInd Bank, Power Grid Corporation, Trent, and HCL Technologies slipped as much as 2.90 percent.
Broader market indices also posted gains. The Nifty Midcap 100 rose 0.71 percent, while the Nifty Smallcap 100 advanced 0.72 percent.
“Initial gains driven by hopes of Middle East stability and declining crude prices faded after renewed tensions unnerved investors,” noted Vinod Nair, Head of Research at Geojit Financial Services. “Looking ahead, the market’s direction will likely be influenced by the strength of domestic earnings, especially as Q1 results approach, backed by a solid macroeconomic environment.”
Volatility showed signs of easing, with the India VIX — a key gauge of market fear — falling 2.88 percent to close at 13.64. (Source: IANS)
