Sensex and Nifty fall marginally due to Middle East dispute
Mumbai: Indian equity markets traded slightly lower in early trade on Wednesday, driven by a cautious mood amid the ongoing US-Israel-Iran conflict, which led to the prolonged closure of the Strait of Hormuz.
By 9:25 am, the Sensex fell 109 points, or 0.14 percent, to 78,096, and the Nifty fell 26 points, or 0.11 percent, to 24,234.
Major broad-cap indices traded at different levels compared to the benchmark index, with the Nifty Midcap 100 gaining 0.72 percent and the Nifty Smallcap 100 gaining 0.85 percent.
All sectoral indices, except for Nifty FMCG, Financial Services, and Private Banks, were trading in the green. Private Banks fell the most, falling 0.73 percent. Nifty Media, Metal, and Consumer Durables were among the top gainers, rising 1.52%, 1.58%, and 1.25%, respectively.
Analysts said short-term resistance for Nifty is at the 24370-24416 area, while strong support is in the 23700-24080 zone.
They further said that derivatives data from yesterday’s session showed that foreign investors and proprietary traders remained positive, while retail investors remained bearish.
Market participants said resistance for Bank Nifty is seen near the 57,200-57,300 zone, while support is in the 56,600-56,700 zone.
Sectorally, auto, financial, and consumer-oriented stocks led the recovery in the previous session, while select IT and oil and gas counters saw some pressure. Broader markets also remained strong, with mid-cap and small-cap stocks outperforming frontline indices, reflecting selective buying interest across sectors.
On Wednesday, markets fluctuated as hopes for a quick end to the US-Israel war on Iran diminished and US President Donald Trump’s threat of retaliation following reports of Iran mining the Strait of Hormuz fueled concerns about stagflation.
Oil prices had reached $120 per barrel earlier this week, but fell below the 90-mark on reports that some countries planned to use emergency crude reserves to mitigate the impact of the conflict.
International Brent crude fell 0.44% to $87.39 per barrel on Wednesday morning.
In Asian markets, China’s Shanghai rose 0.05 percent, and Shenzhen rose 0.85 percent. Japan’s Nikkei rose 2.48 percent, and Hong Kong’s Hang Seng Index rose 0.33 percent. South Korea’s Kospi rose 3.41 percent.
US markets were mixed overnight, with the Nasdaq rising 0.01 percent. The S&P 500 fell 0.21 percent, and the Dow Jones Industrial Average fell 0.07 percent.
On March 10, foreign institutional investors (FIIs) sold equities worth ₹4,685 crore, while domestic institutional investors (DIIs) bought equities worth ₹6,250 crore.
