Sensex and Nifty Brace for Jitters as Geopolitical Tensions Spike Crude Oil Prices

Sensex and Nifty Brace for Jitters as Geopolitical Tensions Spike Crude Oil Prices​

Benchmarking indices Sensex and Nifty experienced significant volatility on Monday. The market movements were fueled by conflicting developments across West Asia and a noticeable uptick in crude oil prices. Investors remained jittery amidst the contrasting signals.

Sensex and Nifty Display Volatile Trading Pattern​

In the early trading session, the 30-share BSE Sensex climbed sharply by 236.64 points, reaching 78,730.18. Concurrently, the 50-share NSE Nifty rose by 66.65 points to quote at 24,420.20.

However, this bullish momentum quickly tempered. The BSE benchmark subsequently traded 27.41 points lower, settling at 78,504.91. The Nifty also pulled back, quoting 11.80 points lower at 24,342.40 by the end of the volatile session.

Corporate Earnings and Sector Performance Drivers​

Market gains were significantly boosted by strong corporate reporting. ICICI Bank, in particular, traded nearly 2 per cent higher. This rally followed the bank’s announcement of a 9.28 per cent rise in consolidated net profit to ₹14,755 crore for the March quarter. The positive results were aided by a nearly 90 per cent drop in provisioning.

Major beneficiaries in the 30-Sensex space included Trent, State Bank of India, ICICI Bank, Asian Paints, Adani Ports, and Axis Bank. Conversely, HDFC Bank, Eternal, InterGlobe Aviation, and Infosys were among the notable laggards.

Geopolitical Tensions Elevate Crude Oil Concerns​

Market experts pointed to escalating geopolitical risks as a major source of uncertainty. Hariprasad K, Research Analyst and Founder, Livelong Wealth, cited reports of the Strait of Hormuz allegedly closing again, following a brief reopening on Friday.

This supply disruption concern triggered a noticeable rebound in global oil prices. Brent crude, the global benchmark, traded 5.57 per cent higher, settling at USD 95.41 per barrel.

West Asia Conflict Fuels Near-Term Volatility Outlook​

The West Asia region continues to generate considerable market commentary. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that the de-escalation-escalation drama maintains near-term market volatility.

He specifically cited Iran's hardening position, including threatening retaliation against the US blockade following the closure of the Strait of Hormuz. However, Vijayakumar added that the current market signals do not reflect outright panic, despite Brent crude spiking back to USD 95 levels.

Investor Flows and Global Market Snapshot​

Overall, investor sentiment remained generally positive over the past week. Foreign Institutional Investors (FIIs) were net buyers, acquiring equities worth ₹683.20 crore on Friday, according to exchange data.

On Friday, the Sensex had jumped 504.86 points or 0.65 per cent, closing at 78,493.54. The Nifty also climbed 156.80 points or 0.65 per cent, finishing at 24,353.55.

Internationally, Asian markets showed resilience. South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were all trading higher. Furthermore, US markets ended significantly higher on Friday.