Indian equity markets opened on a flat note amid mixed global signals and declining crude oil prices. The Sensex was trading at 74,567, up 8 points or 0.01 per cent, while the Nifty was at 23,387, gaining 8 points or 0.03 per cent in early trade. Earlier in the day, the benchmark indices opened at 74,439.34 and 23,362.45, respectively. According to latest reports, markets recovered sharply from intraday lows after investors stepped in for value buying following heavy selling pressure in recent sessions. During the day, the Sensex had fallen more than 424 points to hit a low of 74,134.48, while the Nifty slipped below the 23,300 mark before staging a strong recovery. In the current trading session, Asian Paints surged to ₹2,624, marking a strong gain of 4.73%, while Cipla advanced 3.85% to ₹1,342.
Sectoral performance remained mixed with Nifty IT and Nifty Media emerging as the top losers, while Nifty Metal, Nifty FMCG and Nifty Chemicals emerged as the top gainers. Among top laggards in the Nifty pack, Eicher Motors, Power Grid, NTPC, Infosys, Dr Reddy's Laboratories, Axis Bank and Bajaj Finance were among the top underperformers. The sectoral divergence reflects continued uncertainty in technology and media sectors, while metals and FMCG stocks benefit from bargain hunting and defensive positioning. Asian Paints emerged as the top gainer with a rise of nearly 5 per cent, followed by Adani Ports, Tata Steel, BEL and Kotak Mahindra Bank in the previous session, with metal stocks continuing to lead the recovery. In the current session, Hindalco Industries rose 3.67% to ₹1,079.6 and Bharat Electronics gained 3.31% to ₹430.3, while Power Grid Corporation retreated 1.75% to ₹300.95 and Eicher Motors slipped 1.72% to ₹7,003.5.
Commenting on Nifty technical outlook, experts said that 23,400 now acts as the immediate support level, with the recovery above this crucial 23,400 mark triggering fresh buying and short covering. As reported by Choice Broking, "A sustained recovery above 23,400 may trigger a pullback towards 23,500-23,600." The technical recovery suggests potential for further upside movement, though volatility remains elevated. India VIX, which measures market volatility and investor fear, rose 0.75% to settle at 19.43, reflecting continued caution among traders amid geopolitical uncertainty, elevated oil prices and foreign fund outflows.
Investor sentiment remained cautious after Prime Minister Narendra Modi urged citizens to reduce energy consumption, foreign travel and gold purchases amid rising geopolitical uncertainties and pressure from elevated crude oil prices. The central government has also increased customs duty on gold, silver and precious metal imports to 15% from the earlier 6%, with gold trading at $4,732 per ounce internationally. The Indian rupee recovered 16 paise from its record low and traded near 95.52 against the US dollar, following the government's decision to increase gold import tariffs. However, analysts said persistent volatility in oil prices and uncertainty surrounding the geopolitical situation are likely to keep markets under pressure in the near term, especially given India's dependence on crude imports.
Global markets provided mixed cues with Brent crude declining 1.31 per cent to $106.35 per barrel, while US West Texas Intermediate (WTI) crude fell 1.37 per cent to $100 per barrel. In Asian markets, Japan's Nikkei was trading 0.5 per cent higher at 63,085, while Hong Kong's Hang Seng rose 0.32 per cent to 26,432. South Korea's KOSPI was trading nearly 2 per cent higher at 7,794.81. In the US, Wall Street witnessed negative performance overnight, with the S&P 500 closing 0.16 per cent lower at 7,400.96, while the Nasdaq settled 0.71 per cent down at 26,088.20. Foreign institutional investors (FIIs) may continue to remain sellers in the market, while investors are likely to prefer defensive sectors such as pharmaceuticals amid prevailing uncertainty.
