GG News Bureau
Mumbai, 19th June: Benchmark indices Sensex and Nifty opened lower on Thursday, mirroring weak cues from global markets as heightened tensions between Iran and Israel continued to weigh on investor sentiment. However, markets later turned volatile, erasing early losses to trade flat.
The 30-share BSE Sensex fell by 253.62 points to 81,191.04 in early trade, while the NSE Nifty declined 73.95 points to 24,738.10. Both indices, however, saw a recovery later, with the Sensex edging up 39.09 points to 81,483.75 and the Nifty gaining 22.70 points to trade at 24,835.70.
Among the Sensex constituents, Tech Mahindra, Adani Ports, HCL Tech, Infosys, IndusInd Bank, TCS, Tata Steel, and Power Grid were among the top laggards. On the other hand, Titan, Mahindra & Mahindra, Kotak Mahindra Bank, Tata Motors, Axis Bank, and Larsen & Toubro were among the leading gainers.
Asian markets also reflected cautious investor mood, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite Index, and Hong Kong’s Hang Seng trading in negative territory. U.S. markets closed mixed on Wednesday.
Meanwhile, global oil benchmark Brent crude slipped 0.27% to $76.49 per barrel. Analysts warned that any escalation in the Middle East conflict, particularly near the strategic Strait of Hormuz, could result in a sharp spike in crude prices, adding to India’s import bill pressures.
“The 24,500–25,000 range for the Nifty is likely to hold unless there’s a significant shift in the geopolitical situation. De-escalation could push the index beyond the upper band, while escalation might threaten the 24,500 support level,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He added that the U.S. Federal Reserve’s decision to hold rates steady was on expected lines, with the projection of two rate cuts by year-end offering some relief to global markets.
Foreign Institutional Investors (FIIs) remained net buyers, purchasing equities worth ₹890.93 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,091.34 crore, according to exchange data.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “The Israel-Iran conflict remains a key overhang. Rising crude prices, if the conflict prolongs, could add to inflationary pressures and impact India’s economic stability.”
On Wednesday, the Sensex had closed 138.64 points lower at 81,444.66, while the Nifty slipped 41.35 points to settle at 24,812.05, reflecting investor caution ahead of global economic cues and geopolitical developments.
