Markets Hold Flat at Midday; Sensex Down Just 10 Points, Nifty Up 27 points as Iran War Tensions Keep Gains in Check

Mumbai, May 26: Indian equity benchmarks traded in a narrow range through Tuesday’s midday session, with the Sensex and Nifty holding virtually flat as investors balanced Monday’s sharp 1,000-point rally gains against fresh geopolitical uncertainty after the United States launched new military strikes on Iran even as peace negotiations continued in Doha.

The BSE Sensex stood at 76,479.28, down just 9.68 points or 0.01%, as of 11:58 IST, while the Nifty 50 edged up 27.40 points or 0.11% to 24,059.10 at the same time a remarkably composed midday position reflecting a market digesting conflicting signals on the Iran war front.

The Nikkei reported citing a Middle East diplomatic source that Iran and the US are discussing a framework under which the Strait of Hormuz would reopen 30 days after a peace deal, with Iran clearing mines during that window a development that lent a floor to sentiment even as fresh US strikes overnight unsettled investors. Iran remains the central macro variable threading through every asset class from crude to the rupee to equity indices, with the conflict now in its fourth month.

Gainers & Losers

Among Nifty 50 gainers, Coal India led the index with a 3.02% advance to an LTP of ₹471.85 from its previous close of ₹458.00, followed by Adani Enterprises which climbed 2.62% to ₹2,924.30 from ₹2,849.70. TMPV rose 2.46% to ₹382.45 from ₹373.25, Eternal gained 1.24% to ₹250.75 from ₹247.67, and Bajaj Auto advanced 1.13% to ₹10,610.00 from ₹10,491.00.

On the losing side, Apollo Hospital was the top decliner, falling 1.43% to ₹8,284.00 from its previous close of ₹8,404.00. TCS slipped 0.81% to ₹2,289.50 from ₹2,308.20, IndiGo declined 0.73% to ₹4,469.00 from ₹4,501.90, Kotak Bank fell 0.73% to ₹390.00 from ₹392.85, and Axis Bank dipped 0.72% to ₹1,301.80 from ₹1,311.20.

Broader & Sectoral Markets

In the broader market, Nifty Smallcap 100 was the standout performer, gaining 0.87% to 18,360.35 from its previous close of 18,202.70, followed by Nifty Smallcap 50 up 0.83% to 9,052.45 from 8,977.90 and Nifty Midcap Select advancing 0.57% to 14,643.20 from 14,559.90.

On the sectoral front, Nifty Metal led the pack with a 1.05% gain to 13,486.20 from 13,345.65, Nifty Energy rose 0.99% to 40,979.80 from 40,578.80, Nifty CPSE climbed 0.73% to 7,208.70 from 7,156.65, while Nifty PSU Bank was the lone sectoral decliner among the tracked indices, slipping 0.24% to 8,218.45 from 8,238.10.

US-Iran Conflict

The US-Iran conflict continued to cast a long shadow over global markets on Tuesday, with US Central Command confirming fresh strikes on southern Iran targeting mine-laying boats and missile launch sites even as Iran’s top negotiator was in Doha for talks. Iran’s Fars news agency separately reported that the country downed a US stealth drone using a new air defence system, while Israeli PM Netanyahu announced intensified strikes on Hezbollah in Lebanon, adding another layer of regional instability to an already fragile diplomatic environment.

Oil Prices

Oil prices rose in early Asian trade as the fresh US strikes revived supply disruption fears, with Brent crude climbing more than 1% to $97.32 a barrel after Monday’s sharp more-than-5% fall that had dragged it below $100. WTI crude edged up marginally from Monday’s last traded price but remained about 5.5% below Friday’s close, with no settlement on Monday due to the US Memorial Day holiday.

Asian Markets

Asian markets were mixed on Tuesday morning, with Hong Kong’s Hang Seng rising 0.33% to 25,690.63 and Indonesia’s JSX Composite gaining 0.72% to 6,206.35, while Japan’s Nikkei 225 fell 0.40% to 64,897.64 and the Shanghai Composite slipped 0.37% to 4,137.22.

Morning Trade

Indian benchmark indices opened virtually flat on Tuesday, with the Sensex trading at 76,479.20, down 9.76 points or 0.01%, and the Nifty 50 edging up 6.30 points to 24,038.00 as of 09:30 IST, consolidating Monday’s sharp 1,074-point Sensex surge with neither bulls nor bears willing to commit strongly ahead of further clarity on the Iran war diplomatic track.

Sources:

• https://www.nseindia.com/market-data/live-market-indices
• https://www.nseindia.com/market-data/top-gainers-losers
• bseindia.com