Indian equity markets erased steep early losses to end almost unchanged on Monday as strong buying in information technology stocks and select banking heavyweights offset concerns over escalating tensions in West Asia and a spike in crude oil prices.
The Sensex had fallen more than 700 points during intraday trade before recovering to close 47.08 points, or 0.06 percent, higher at 77,616.40. The Nifty 50 also bounced back from the day's lows to finish 4.20 points, or 0.02 percent, higher at 24,211.
Market sentiment remained fragile after renewed military escalation in West Asia raised fears of disruptions to global energy supplies through the Strait of Hormuz. Brent crude prices rose about 3 percent during the session, adding to concerns over inflation and higher import costs.
Despite the geopolitical uncertainty, buying in large-cap IT stocks helped stabilise the benchmarks by the close.
Technology stocks emerged as the biggest support for the market, while select banking stocks also aided the recovery.
The biggest contributors to the Sensex gains were:
Infosys
Tata Consultancy Services (TCS)
HCL Technologies
Kotak Mahindra Bank
The major drags on the index were:
HDFC Bank
Reliance Industries
Bharti Airtel
The broader market was subdued, with the Nifty Midcap 100 and Nifty Smallcap 100 ending largely flat.
Sector-wise performance remained mixed.
Top gainers
Nifty IT: +3.59 percent
Nifty Media: +2.09 percent
Nifty Consumer Durables: +1.15 percent
Nifty Private Bank: +0.25 percent
Nifty Bank: +0.15 percent
Nifty PSU Bank: +0.11 percent
Top losers
Nifty FMCG: -1.0 percent
Nifty Metal: -0.69 percent
The market recovery helped lift the total market capitalisation of BSE-listed companies to more than ₹482 lakh crore from about ₹481.75 lakh crore in the previous session.
Analysts said the sharp recovery reflected improving confidence in the IT sector following encouraging business updates and relatively attractive valuations.
The moderation in foreign institutional investor selling in IT stocks and a better-than-expected start to the June quarter earnings season also supported sentiment. Early corporate results suggest earnings downgrades for the quarter may be less severe than previously feared, while Indian market valuations have become more reasonable after recent corrections.
Nifty gainers
Tata Consultancy Services
HCL Technologies
Infosys
Tech Mahindra
Bajaj Auto
Nifty losers
Grasim Industries
Tata Steel
Nestlé India
Eternal
InterGlobe Aviation
The most actively traded stocks on the NSE included:
PC Jeweller
Vodafone Idea
Kalyan Jewellers India
Vedanta
Motisons Jewellers
Cupid
On the BSE, 185 stocks touched fresh 52-week highs, including Federal Bank, JSW Infrastructure, Nykaa, Oracle Financial Services Software, Paytm, The Phoenix Mills and Torrent Pharmaceuticals. In comparison, 78 stocks hit new 52-week lows.
Technical analysts expect the Nifty to remain range-bound in the near term.
Expected trading range: 23,800–24,350
Immediate support: 24,000–24,100
Strong support: 23,800
Immediate resistance: 24,275
Breakout above 24,350 could trigger a move towards 24,600.
As long as the Nifty holds above the 24,000 level, the broader short-term trend is expected to remain positive, while a decisive move above 24,350 could signal a fresh leg of the rally.