Sensex, Nifty Finish Flat-to-Positive as Geopolitical Risks Weigh

Indian equity benchmarks ended marginally higher on Monday, with the Sensex gaining over 43 points while the Nifty closed almost flat, as rising crude oil prices and geopolitical uncertainties weighed on investor sentiment.

The 30-share BSE Sensex advanced 43.27 points, or 0.06 per cent, to settle at 78,542.44. During the session, it moved between a high of 78,676.98 and a low of 78,298.92, recording an intraday swing of 378.06 points.

The NSE Nifty rose 13.15 points, or 0.05 per cent, to end at 24,583.80.

Among Sensex constituents, Titan, Bajaj Finance, Bajaj Finserv, Tata Steel, Asian Paints and Infosys were among the prominent gainers. State Bank of India, Eternal, NTPC, ITC and Tata Consultancy Services were among the stocks that declined.

Brent crude, the global oil benchmark, climbed 1.10 per cent to USD 84.47 per barrel, adding pressure to market sentiment amid continued uncertainty surrounding developments in the Middle East and the Strait of Hormuz.

“Markets remained on a tight leash as uncertainty surrounding the Strait of Hormuz continued to temper risk appetite, even as encouraging corporate earnings lent support to broader sentiment,” said Vinod Nair, Head of Research at Geojit Investments Limited.

He added that softer-than-expected US jobs data had reduced expectations of further Federal Reserve tightening, shifting investor attention towards upcoming US inflation data for clues on interest rates and bond yields.

Foreign Institutional Investors (FIIs) bought equities worth Rs 480.24 crore on Friday, according to exchange data.

Ponmudi R, CEO of Enrich Money, said rising crude prices and Middle East uncertainty offset optimism from weaker US jobs data. Investors remained cautious ahead of key India and US inflation readings due later this week.

Asian markets ended higher, while European equities traded mixed. US markets had closed higher on Friday.

On Friday, the Sensex had declined 455.59 points, or 0.58 per cent, while the Nifty fell 65.35 points, or 0.27 per cent.