Sensex, Nifty Trim Gains Amid Ceasefire Uncertainty and Profit Booking

Mumbai, June 24 – On Tuesday, Indian financial markets lost a lot of ground they had gained early in the day. This was because investors became apprehensive after rumors of a possible truce breakdown between Iran and Israel.

After a robust start fuelled by positive global cues, major indices lost pace in the second half of the afternoon as geopolitical fears reappeared, encouraging profit booking across key sectors.  Even though the benchmarks were volatile during the day, they were able to close the day with small gains.

Broader markets reflected the pattern, while defensive sectors experienced greater demand amid rising risk aversion.

Sharp Intra-Day Rally Fizzles Out – Market Performance Snapshot

The BSE Sensex hit an intraday high of 83,018.16, up 1,121.37 points (1.36%). This was because of rallies around the world and falling crude oil prices. Later, it gave up most of those gains and closed at 82,055.11, which was up 158.32 points (0.19%).

The NSE Nifty 50 reached its highest point of 25,317.70, but ended the day at 25,044.35, which is a 72.45-point (0.29%) increase.

Market Sentiment Hit by Geopolitical Risks

Investor optimism was initially driven by hopes of a ceasefire in the Middle East and plunging oil prices. But renewed conflict-related headlines triggered caution.

“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,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sectoral and Stock Highlights

Among Sensex constituents, Adani Ports, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finserv, and Titan emerged as the top gainers.

On the flip side, Power Grid, Trent, NTPC, Maruti, HCL Tech, and Bharat Electronics were among the key laggards.

Global Market Support

Asian and European markets held firm on the day, but the mood was fragile, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all ending in the green. European markets were also trading with gains during mid-session, while US equities closed positively on Monday.

Crude Oil and Institutional Activity

Brent crude, the global oil benchmark, tumbled 3.20 percent to USD 69.13 a barrel, offering relief to energy-importing nations like India.

On the institutional front, FIIs sold equities worth Rs 1,874.38 crore on Monday, while DIIs were net buyers to the tune of Rs 5,591.77 crore.

Previous Session Recap

On Monday, the Sensex had dropped 511.38 points or 0.62 percent to end at 81,896.79. The Nifty declined by 140.50 points or 0.56 percent to settle at 24,971.90.

Key Takeaway

Despite a strong early rally driven by global cues and falling oil prices, Indian equities ended the day with marginal gains as renewed geopolitical concerns led to profit booking and heightened volatility.

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