Mumbai, June 24: Equity benchmarks Sensex and Nifty on Tuesday gave up most of their sharp intra-day gains due to the emergence of profit-taking as investors turned cautious amid reports of a ceasefire violation between Iran and Israel.
In the morning trade, markets bounced back sharply, mirroring a rally in global peers and a steep decline in crude oil prices amid hopes of a potential de-escalation in the Middle East conflict.
After surging 1,121.37 points or 1.36 per cent to 83,018.16 in intra-day trade, the 30-share Sensex later trimmed most of its gains as reports surfaced of the ceasefire plan faltering. But, the benchmark still managed to settle in the green, climbing 158.32 points or 0.19 per cent to 82,055.11.
As many as 2,662 stocks advanced and 1,339 declined while 143 remained unchanged on the BSE.
On similar lines, the 50-share Nifty rose 72.45 points or 0.29 per cent to end at 25,044.35. The index fell from an intra-day high of 25,317.70.
“Initial gains in the domestic market, driven by the ceasefire announcement and sharp drop in crude prices, were short-lived as renewed geopolitical tensions in the Middle East unsettled investor sentiment.
“Adding to the uncertainty was heightened volatility due to expiry day dynamics. Although the market attempted to break out of its recent consolidation range, persistent global risks continue to impede momentum,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex constituents, Adani Ports, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finserv and Titan were among the biggest gainers.
In contrast, Power Grid, Trent, NTPC, Maruti, HCL Tech and Bharat Electronics were among the laggards.
Shares of crude oil sensitive sectors — oil marketing companies, aviation, paints and adhesives — jumped on Tuesday after a sharp correction in Brent crude oil prices.
The stock of Hindustan Petroleum Corporation Ltd jumped 3.24 per cent, Indian Oil Corporation rallied 2.04 per cent and Bharat Petroleum Corporation Ltd went up by 1.92 per cent on the BSE.
Shares of InterGlobe Aviation edged higher by 2.55 per cent and SpiceJet rallied 2.15 per cent.
Kansai Nerolac Paints advanced by 1.82 per cent, Shalimar Paints rallied by 1.80 per cent, Asian Paints went up by 0.48 per cent and Indigo Paints (0.38 per cent).
“It turned out to be an eventful day for market participants, as the benchmark index witnessed sharp swings in both directions before finally closing with marginal gains. Initially, sentiment was buoyed by reports of a potential ceasefire between Iran and Israel, along with a sharp decline in crude oil prices.
“However, concerns resurfaced in the latter half following reports of a possible ceasefire violation by Iran, which led to a pullback and erased most of the early gains. Eventually, the Nifty ended with marginal gains,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge climbed 0.71 per cent and the midcap index rose 0.54 per cent.
Among BSE sectoral indices, services jumped 2.13 per cent, telecommunication (1.13 per cent), commodities (1.12 per cent), metal (0.96 per cent), financial services (0.81 per cent), bankex (0.72 per cent) and auto (0.62 per cent).
On the other hand, IT, oil & gas, teck and BSE Focused IT were the laggards.
“Indian equity benchmarks pared early gains on Tuesday after fresh geopolitical tensions emerged. Investors are now watching oil prices and geopolitical cues closely. A sustained spike in crude could cap any near-term upside in equities despite otherwise supportive domestic fundamentals,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.
All of the 10 listed Adani group stocks ended higher on Tuesday, with Ambuja Cements surging 4 per cent, on a day when the group conducted its annual general meeting.
The Adani Group also plans to invest a record USD 15-20 billion across businesses over the next five years to chart out the next phase of growth, Chairman Gautam Adani said on Tuesday as he touted the conglomerate’s strong balance sheet and robust business to shrug off relentless scrutiny it faces.
Meanwhile, Adani Group has raised USD 1 billion from global investors led by New York-based Apollo Global Management to refinance existing debt for its Mumbai airport.
Mumbai International Airport Ltd (MIAL), a unit which operates India’s second largest airport, will use the proceeds to refinance debt raised in 2022, it said in a statement.
In another development, London-based Vedanta Resources Limited (VRL), the parent firm of Mumbai-listed mining conglomerate Vedanta Ltd, has secured a term loan facility of up to USD 600 million that will be used to refinance a high-cost private credit facility, according to a communication sent to bondholders.
Shares of Vodafone Idea on Tuesday jumped 4.89 per cent to close at 6.87 apiece after reports of the government mulling multiple options to provide relief to the telco on its Rs 84,000 crore outstanding AGR dues.
Union Telecom Minister Jyotiraditya Scindia on Tuesday said duopoly is not good and there must be competition in every sector.
S&P Global Ratings on Tuesday upped India’s GDP growth forecast for the current fiscal to 6.5 per cent, citing lower crude prices, monetary easing and normal monsoon, and said the ongoing geopolitical tensions are unlikely to put a “significant pressure” on the rupee or inflation.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled significantly higher.
European markets were trading with gains in mid-session trade.
US markets ended in positive territory on Monday.
Global oil benchmark Brent crude dropped 3.20 per cent to USD 69.13 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,874.38 crore on Monday, while Domestic Institutional Investors (DII) bought stocks worth Rs 5,591.77 crore, according to exchange data.
On Monday, the 30-share BSE Sensex ended with a loss of 511.38 points or 0.62 per cent at 81,896.79. The Nifty dropped 140.50 points or 0.56 per cent to 24,971.90. (PTI)
