Sensex, Nifty close higher despite US-Iran tensions; TCS results in focus
Benchmark indices closed higher on Thursday as investors returned to beaten-down stocks after Wednesday's sharp sell-off. The rebound was led by midcaps and realty shares, while Middle East tensions, crude prices and earnings remained in focus.
Benchmark indices closed higher on Thursday, recovering a part of Wednesday's steep losses as investors returned to beaten-down stocks despite lingering concerns over the conflict in the Middle East and the upcoming June-quarter earnings season.
The BSE Sensex gained 238.22 points, or 0.31%, to close at 76,741.82, while the NSE Nifty50 advanced 80.75 points, or 0.34%, to settle at 23,962.80. The gains came a day after both benchmark indices recorded their biggest single-day decline in three months.
MIDCAPS, REALTY LEAD MARKET RECOVERY
The recovery was broader than the benchmark indices, with mid- and small-cap stocks outperforming large caps.
Among the broader market indices, the Nifty Smallcap 100 gained 1.03%, Nifty Midcap 50 rose 0.97%, Nifty Midcap 100 advanced 0.95%, Nifty MidSmall Financial Services climbed 0.95%, Nifty 500 gained 0.68%, Nifty 200 rose 0.64% and Nifty 100 added 0.57%. India VIX, the market's fear gauge, declined 7.11%, indicating easing volatility after Wednesday's sharp spike.
Sectorally, Nifty Consumer Durables emerged as the top performer, rising 1.91%, followed by Nifty Realty, which gained 1.34%. Nifty Private Bank advanced 0.90%, Nifty MidSmall Healthcare climbed 0.90%, Nifty Chemicals gained 0.83%, Nifty PSU Bank rose 0.77%, Nifty Media advanced 0.75%, Nifty Pharma gained 0.69%, Nifty Financial Services 25/50 rose 0.68%, Nifty Healthcare Index added 0.66%, Nifty FMCG and Nifty500 Healthcare both gained 0.62%, while Nifty Financial Services Ex-Bank rose 0.59% and Nifty Auto added 0.55%.
The Nifty IT index was the biggest laggard, falling 1.46% as investors remained cautious ahead of Tata Consultancy Services' June-quarter earnings due after market hours. Nifty MidSmall IT & Telecom also ended marginally lower.
Among Sensex stocks, Sun Pharma was the top gainer, rising 2.70%, followed by Bharti Airtel, Bajaj Finserv, IndiGo, Eternal, Kotak Mahindra Bank, and HDFC Bank. On the losing side, Infosys fell 1.80%, while HCLTech, TCS and Tech Mahindra dragged the IT index lower.
INVESTORS LOOK PAST GEOPOLITICAL RISKS
Markets recovered despite fresh geopolitical uncertainty after the US launched strikes on Iran earlier this week, keeping investors focused on developments in the Middle East.
Crude oil prices, however, eased from Wednesday's highs, offering some relief. Brent crude was trading around $78.16 a barrel, while WTI crude stood at $73.57. The moderation in oil prices helped calm concerns over inflation and India's import bill, although prices remained elevated.
Investors are now shifting their attention to the June-quarter earnings season, with Tata Consultancy Services set to kick off the reporting season for large-cap companies.
WHAT TO EXPECT
Vinod Nair, Head of Research at Geojit Investments Limited, said, "Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day's sell-off."
"The recovery was led by mid- and small-cap stocks, with realty and PSU banks bouncing back strongly after their recent correction. Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for the second half of the year, a recovery in rainfall conditions, and better valuation levels. That said, the latest US Fed minutes flagged renewed inflation concerns, which could weigh on global markets," he added.
The Indian rupee also strengthened during the session, rising 0.2% against the US dollar to 95.3875, supported by likely dollar-selling intervention by the Reserve Bank of India and softer crude oil prices.
While Thursday's rebound helped markets recover a part of Wednesday's losses, analysts said investors will continue to track developments in the Middle East, movements in crude oil prices and corporate earnings for further direction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark indices closed higher on Thursday, recovering a part of Wednesday's steep losses as investors returned to beaten-down stocks despite lingering concerns over the conflict in the Middle East and the upcoming June-quarter earnings season.
The BSE Sensex gained 238.22 points, or 0.31%, to close at 76,741.82, while the NSE Nifty50 advanced 80.75 points, or 0.34%, to settle at 23,962.80. The gains came a day after both benchmark indices recorded their biggest single-day decline in three months.
MIDCAPS, REALTY LEAD MARKET RECOVERY
The recovery was broader than the benchmark indices, with mid- and small-cap stocks outperforming large caps.
Among the broader market indices, the Nifty Smallcap 100 gained 1.03%, Nifty Midcap 50 rose 0.97%, Nifty Midcap 100 advanced 0.95%, Nifty MidSmall Financial Services climbed 0.95%, Nifty 500 gained 0.68%, Nifty 200 rose 0.64% and Nifty 100 added 0.57%. India VIX, the market's fear gauge, declined 7.11%, indicating easing volatility after Wednesday's sharp spike.
Sectorally, Nifty Consumer Durables emerged as the top performer, rising 1.91%, followed by Nifty Realty, which gained 1.34%. Nifty Private Bank advanced 0.90%, Nifty MidSmall Healthcare climbed 0.90%, Nifty Chemicals gained 0.83%, Nifty PSU Bank rose 0.77%, Nifty Media advanced 0.75%, Nifty Pharma gained 0.69%, Nifty Financial Services 25/50 rose 0.68%, Nifty Healthcare Index added 0.66%, Nifty FMCG and Nifty500 Healthcare both gained 0.62%, while Nifty Financial Services Ex-Bank rose 0.59% and Nifty Auto added 0.55%.
The Nifty IT index was the biggest laggard, falling 1.46% as investors remained cautious ahead of Tata Consultancy Services' June-quarter earnings due after market hours. Nifty MidSmall IT & Telecom also ended marginally lower.
Among Sensex stocks, Sun Pharma was the top gainer, rising 2.70%, followed by Bharti Airtel, Bajaj Finserv, IndiGo, Eternal, Kotak Mahindra Bank, and HDFC Bank. On the losing side, Infosys fell 1.80%, while HCLTech, TCS and Tech Mahindra dragged the IT index lower.
INVESTORS LOOK PAST GEOPOLITICAL RISKS
Markets recovered despite fresh geopolitical uncertainty after the US launched strikes on Iran earlier this week, keeping investors focused on developments in the Middle East.
Crude oil prices, however, eased from Wednesday's highs, offering some relief. Brent crude was trading around $78.16 a barrel, while WTI crude stood at $73.57. The moderation in oil prices helped calm concerns over inflation and India's import bill, although prices remained elevated.
Investors are now shifting their attention to the June-quarter earnings season, with Tata Consultancy Services set to kick off the reporting season for large-cap companies.
WHAT TO EXPECT
Vinod Nair, Head of Research at Geojit Investments Limited, said, "Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day's sell-off."
"The recovery was led by mid- and small-cap stocks, with realty and PSU banks bouncing back strongly after their recent correction. Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for the second half of the year, a recovery in rainfall conditions, and better valuation levels. That said, the latest US Fed minutes flagged renewed inflation concerns, which could weigh on global markets," he added.
The Indian rupee also strengthened during the session, rising 0.2% against the US dollar to 95.3875, supported by likely dollar-selling intervention by the Reserve Bank of India and softer crude oil prices.
While Thursday's rebound helped markets recover a part of Wednesday's losses, analysts said investors will continue to track developments in the Middle East, movements in crude oil prices and corporate earnings for further direction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
