Markets ended slightly higher on Monday as continued uncertainty surrounding the Strait of Hormuz kept investors cautious, while robust corporate earnings and weaker-than-expected US jobs data offered some support.
The BSE Sensex gained 43.27 points, or 0.06%, to finish at 78,542.44, while the Nifty 50 advanced 13.15 points, or 0.05%, to close at 24,583.80. Both benchmark indices remained in a narrow range during the session, moving between gains and losses of roughly 0.3%.
The subdued market close came despite strong moves in individual stocks. Investors continued to assess the impact of Middle East tensions on crude oil prices, while softer-than-expected US employment data eased concerns over near-term interest rate increases.
Uncertainty surrounding the Strait of Hormuz remained one of the biggest concerns for investors. Any disruption along the crucial shipping route could drive crude prices higher, increasing pressure on India’s import bill, inflation and corporate profitability.
At the same time, positive earnings and the latest US economic figures provided some support to the market. Vinod Nair, Head of Research at Geojit Investments Limited, said markets remained “on a tight leash” as uncertainty over the Strait of Hormuz continued to weigh on investor risk appetite.
He said encouraging corporate results were helping sentiment, while weaker US jobs data reduced expectations of further monetary tightening by the Federal Reserve.
“Globally, softer-than-expected U.S. jobs data weakened the case for Fed tightening, shifting investor focus to upcoming U.S. inflation readings for fresh direction on rates and bond yields,” Nair said.
He added that lower yields could renew investor interest in emerging markets and potentially encourage stronger foreign institutional investor participation.
TITAN LEADS GAINERS
Titan emerged as the biggest gainer among major Nifty stocks, climbing 3.14% to Rs 5,098.20. The stock continued its upward movement following strong Q1 results and favourable brokerage commentary.
Bajaj Finance rose 1.93%, while Bajaj Finserv gained 1.15%. Tata Steel advanced 1.09%, Asian Paints increased 1.07% and Infosys gained 0.81%.
Axis Bank, Trent, HCLTech and Larsen & Toubro were among the other notable gainers.
On the losing side, SBI declined 2.19%, making it the biggest faller among major stocks. NTPC dropped 1.52%, while Eternal declined 1.57%.
Bajaj Finance was the strongest performer within the broader financial segment, while several banking stocks also remained positive.
Sectoral performance was mixed, with 10 of the 16 major sectoral indices closing lower.
Nifty Private Bank rose 0.52%, while Nifty Financial Services 25/50 gained 0.11%. Nifty IT advanced 0.27% and Nifty Media climbed 0.29%.
Nifty Realty was among the strongest sectoral performers, gaining 1.35%, while Nifty MidSmall Financial Services advanced 1.57%.
Among the decliners, Nifty PSU Bank dropped 1.67%, Nifty Healthcare fell 0.35% and Nifty FMCG declined 0.14%. Nifty Oil & Gas also slipped 0.37%.
BROADER MARKET SHOWS MIXED PICTURE
The broader market performed somewhat better than the benchmark indices.
Nifty Midcap 50 climbed 0.70%, while Nifty Midcap 100 gained 0.62%. Nifty 200 advanced 0.17% and Nifty 500 increased 0.13%.
However, Nifty Smallcap 100 declined 0.27%, indicating that buying interest was not evenly distributed across the broader market.
Nifty Financial Services Ex-Bank was among the better-performing sectoral indices, rising 1.25%, while Nifty MidSmall Financial Services gained 1.57%.
Nair said India’s domestic growth drivers and underlying economic fundamentals continued to support investor confidence despite global uncertainty.
“A softer yield environment could revive interest in emerging markets and pave the way for stronger FII participation,” he said.
For Indian markets, the movement of crude oil prices and developments around the Strait of Hormuz remain key near-term factors. Investors will also monitor upcoming US inflation data for indications about the Federal Reserve’s future interest-rate trajectory.
For now, markets are weighing two competing forces: strong domestic corporate earnings and expectations of easier global monetary conditions on one side, against Middle East tensions, crude oil volatility and uncertainty surrounding global trade and economic growth on the other.
