Indian equity markets ended largely flat on Wednesday after retreating from their day's high amid renewed geopolitical tensions. The BSE Sensex closed 64 points, or 0.09%, higher at 73,983.18, while the Nifty 50 declined 27 points, or 0.12%, to settle at 23,184.60. According to The Hindu, the benchmark indices retreated from their day's high and ended flat as renewed hostilities between the United States and Iran unsettled investor sentiment. During intraday trading, the Sensex jumped 694.25 points, or 0.93%, to 74,613.01 before trimming most of its gains in the fag-end of trading. The Nifty hit a high of 23,425.35 and a low of 23,184.60 during the session. Midcap and smallcap indices declined over 1%, remaining below key moving averages as broader market risk appetite softened.
Among the Sensex constituents, Hindustan Unilever, Axis Bank, Kotak Mahindra Bank, ICICI Bank, ITC and HDFC Bank were the biggest winners, while Infosys, Eternal (Zomato-parent), Tata Steel, Bajaj Finserv and Titan were among the laggards. As per The Hindu, of the 4,369 stocks traded on the BSE, 1,475 advanced, 2,740 declined, and 154 remained unchanged. A total of 115 stocks touched their 52-week highs, while 77 hit 52-week lows. As many as 152 stocks hit the upper circuit, while 195 stocks touched the lower circuit. The Nifty FMCG index gained about 1% led by HUL, ITC and Nestle India, while the Nifty IT index declined for the sixth consecutive day with persistent selling in Infosys. The Nifty Private Bank index rose over 1% supported by strength in Axis, Kotak, ICICI and HDFC Bank.
Gold prices declined sharply by ₹4,300 to ₹1.56 lakh per 10 grams, while silver prices fell by ₹10,000 to ₹2.45 lakh per kg in the national capital. As reported by The Hindu BusinessLine, the fall was driven by a rise in crude oil prices and a stronger US dollar, which weighed on demand for precious metals. The decline in precious metals contributed to the overall market sentiment as investors moved away from safe-haven assets amid geopolitical tensions.
The Indian rupee ended almost unchanged against the US dollar as markets balanced volatility in crude oil prices, increased dollar demand due to maturing non-deliverable forward contracts, and possible central bank intervention. According to reports, the rupee closed at 95.2650 per dollar, marginally stronger than the previous session's close of 95.35. Brent crude, the global oil benchmark, rebounded around 1% to near $92 per barrel, recovering from seven-week lows but still below recent multi-year highs. In Asian markets, South Korea's Kospi declined about 5%, Japan's Nikkei 225 fell around 2%, and Taiwan dropped over 3%, while markets in Europe were trading in negative territory. The India VIX rose to 15.61, reflecting increased volatility amid the geopolitical tensions.
According to Ponmudi R., CEO of Enrich Money, "Indian equity markets ended modestly lower as renewed hostilities between the United States and Iran unsettled investor sentiment and revived concerns over the durability of the fragile ceasefire. The Nifty traded positively through much of the first half before surrendering gains later in the session, as geopolitical uncertainty continued to limit risk appetite and cap any meaningful recovery." The index is trading close to a crucial support zone of 23,000–23,100, which has become an important level for the bulls to defend. On the upside, 23,400–23,550 remains the immediate resistance zone, with any recovery towards this range facing selling pressure unless supported by strong buying momentum. Technical analysts point to a range of 23,000–23,550, with immediate support near 23,200 and key resistance around 23,450–23,550. As per Vatsal Bhuva, Technical Analyst at LKP Securities, "Hence, a range-bound approach is preferred over a directional view."
