Indian Stock Market Ends Higher but Trims Gains as Iran-Israel Tensions Weigh on Sentiment
Nifty and Sensex Close in Green Amid Late Volatility
Mumbai, March 20: Indian equity markets ended Friday’s session in positive territory, although benchmark indices pared a portion of their intraday gains in the final hour as escalating tensions between Iran and Israel pushed crude oil prices higher and impacted investor sentiment.The Nifty 50 closed up by 112.35 points at 23,114.50, while the Sensex gained 325.72 points, or 0.44 per cent, to settle at 74,532.96.
Rising Oil Prices Trigger Late Sell-Off
Markets traded firmly higher for most of the session, but volatility intensified toward the close after reports of fresh clashes between Iran and Israel raised concerns over global oil supply disruptions.The surge in crude oil prices during the latter half of the trading day weighed on sentiment, particularly for an import-dependent economy like India, where higher energy costs can have broader economic implications.
Technical Outlook Signals Resistance for Nifty
From a technical standpoint, the Nifty continues to face resistance near the 23,350 level, reinforcing a cautious trading approach.A move below the 23,000 mark could lead to further downside towards the 22,900 to 22,950 range. On the upside, the 23,600 level is expected to act as a strong resistance, potentially limiting any sharp recovery.
Broader Markets See Profit Booking
The broader market indices also witnessed profit booking in the final hour of trade. The Nifty MidCap index ended 0.67 per cent higher, while the Nifty SmallCap index rose marginally by 0.09 per cent after surrendering a part of their earlier gains.Sectoral Performance Remains Mixed
Sector-wise, realty stocks emerged as the key laggards, with the Nifty Realty index declining around 1 per cent.The Nifty Financial Services and Nifty Media indices also underperformed compared to the broader market.
On the other hand, defensive and rate-sensitive sectors showed resilience. The Nifty Pharma and Nifty PSU Bank indices were among the top gainers during the session.
Rupee Hits Record Low Against US Dollar
In the currency market, the Indian rupee weakened sharply, closing down 1.17 per cent at a record low of 93.71 against the US dollar.The USD/INR pair remained in a bullish setup, having breached its ascending channel resistance, with the next level seen near 93.75 and support shifting to 92.90.
Market Outlook: Focus on Geopolitics and Crude Oil
Market participants are expected to remain cautious in the near term, with close attention on geopolitical developments in the Middle East and fluctuations in crude oil prices, both of which are likely to influence market direction in the coming sessions.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.