Sensex, Nifty Trade Flat After Weak Start as Middle East Tensions Keep Investors Cautious

Sensex, Nifty Trade Flat After Weak Start as Middle East Tensions Keep Investors Cautious​

Mumbai, March 16: Benchmark equity indices opened lower on Monday but quickly erased early losses to trade nearly flat as investors remained cautious amid escalating geopolitical tensions in the Middle East.

The Sensex, comprising 30 stocks, started the session 148 points or 0.19 per cent lower at 74,415 compared with its previous close. The index later recovered and traded nearly flat at 74,611 in early deals, gaining around 50 points.

Nifty Opens Flat Amid Global Uncertainty​

The Nifty 50 also began the session on a subdued note. The index was trading at 23,116 in early trading, up 35 points or 0.15 per cent from Friday’s closing level as market participants closely tracked developments involving Iran, Israel, and the United States.

Among the major laggards in early trade were Infosys, Asian Paints, Maruti Suzuki, Wipro, and Mahindra & Mahindra, which weighed on the benchmark indices.

Sectoral Indices Show Mixed Trend​

Sector-wise performance remained mixed during the early session.

Nifty FMCG emerged as the top gainer, rising 0.51 per cent to 48,166.70. Nifty Pharma also moved higher by 0.27 per cent, while Nifty Metal added 0.19 per cent.

On the other hand, Nifty Chemicals declined 0.24 per cent to 26,256.10, making it one of the weakest sectoral performers during the session.

Geopolitical Risks Weigh on Market Sentiment​

Market sentiment remained fragile as investors reacted to the widening conflict in West Asia. Attacks on tankers in the Gulf region and the possibility of disruptions in the Strait of Hormuz, a critical global oil supply route, have heightened concerns in financial markets.

The escalation has also pushed Brent crude prices closer to the $90 to $100 per barrel range, raising fears of inflationary pressures and potential supply disruptions.

GIFT Nifty Signals Slightly Firm Start​

Despite the cautious environment, GIFT Nifty indicated a slightly steady opening for domestic markets. It was trading around 23,248, up about 49 points or 0.21 per cent, suggesting a modest recovery attempt after the recent market correction.

Technical Levels to Watch for Nifty 50​

On the technical front, analysts are closely watching the 23,000 to 23,100 range as immediate support for the Nifty 50.

The 23,400 to 23,500 zone is expected to act as a key resistance level in the near term.

A decisive move above this range could trigger short covering and potentially push the index toward the 23,800 to 24,000 levels. Conversely, a drop below the 23,000 mark may lead to further weakness toward the 22,800 to 22,700 support band.

FIIs Extend Selling Streak​

Foreign institutional investors continued their selling streak, extending it to the 11th straight session on March 13. During this period, they offloaded equities worth more than Rs 10,000 crore.

Domestic institutional investors helped cushion the market by purchasing nearly Rs 10,000 crore worth of equities, providing some support to benchmark indices.

Analysts noted that investor sentiment remains cautious due to rising crude oil prices, weakness in the rupee, and ongoing geopolitical tensions.