Are Sensex and Nifty Flat Amid Ongoing Geopolitical Tensions?
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Synopsis
As geopolitical tensions rise following 'Operation Sindoor', the Indian equity indices opened nearly flat. With mixed sector performances and market reactions anticipated to upcoming global trade discussions, investors are closely monitoring developments. How will these factors play into the market's future movement?
Key Takeaways
- Indian equity indices opened nearly flat amidst geopolitical tensions.
- Sensex rose by 25 points while Nifty decreased by 3 points.
- Largecap and midcap stocks saw notable buying interest.
- Sectoral performance was mixed with several sectors gaining.
- Upcoming US-China trade discussions may impact market sentiment.
Mumbai, May 8 (NationPress) The Indian equity markets opened nearly unchanged on Thursday as geopolitical tensions remained elevated following ‘Operation Sindoor’.
At 9:26 am, the Sensex recorded a rise of 25 points, reaching 80,772, while the Nifty saw a decrease of 3 points, settling at 24,410.
There was noticeable buying interest in both largecap and midcap stocks, with the Nifty midcap 100 index gaining 166 points or 0.30 percent to reach 54,445 and the Nifty smallcap 100 index climbing 132 points or 0.81 percent to 16,550.
In terms of sector performance, indices for auto, IT, PSU banks, financial services, media, energy, and private banking exhibited gains, while sectors such as pharma, FMCG, metals, real estate, and infrastructure faced declines.
With Asian stocks trading positively, reflecting overnight advancements in US markets, domestic indices are expected to have a stable start amidst the prevailing India-Pakistan tensions, according to analysts.
“However, the market will be responsive to Jerome Powell's remarks regarding higher tariffs following the Fed's decision to maintain interest rates,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities.
Within the Sensex index, notable gainers included Tata Motors, Kotak Mahindra Bank, Power Grid, Axis Bank, Adani Ports, Bajaj Finance, HCL Tech, Bajaj Finserv, IndusInd Bank, SBI, and Tech Mahindra.
However, Eternal, ITC, Maruti Suzuki, HDFC Bank, Tata Steel, Sun Pharma, and ICICI Bank were among the biggest losers.
“The market is optimistic about productive trade discussions between the US and China scheduled for this weekend. Technically, the Nifty's primary support is observed at the 24,171 mark,” added Tapse.
Most Asian markets experienced slight increases, with Tokyo, Shanghai, Hong Kong, and Seoul trading positively, while Bangkok and Jakarta were in decline.
The US markets concluded the last session with gains, fueled by heightened optimism for a de-escalation in President Donald Trump’s tariff strategy.
Reports suggest that Trump may soon unveil a significant trade agreement with the UK.
Point of View
The current state of the Indian equity market reflects a cautious optimism amidst geopolitical uncertainties. The response to external economic factors and domestic stability will remain pivotal for investors as they navigate this complex landscape.
NationPress
23/06/2025
Frequently Asked Questions
What caused the flat opening of Sensex and Nifty?
The flat opening is attributed to ongoing geopolitical tensions following 'Operation Sindoor' and mixed signals from Asian markets.
Which sectors showed gains today?
Sectors such as auto, IT, PSU banks, financial services, media, energy, and private banking showed gains.
What are analysts saying about future market movements?
Analysts suggest that upcoming trade discussions between the US and China, along with comments from Jerome Powell on tariffs, may influence market movements.
Who were the top gainers in the Sensex today?
Top gainers included Tata Motors, Kotak Mahindra Bank, Power Grid, and Axis Bank.
What is the current support level for Nifty?
The current major support level for Nifty is observed at the 24,171 mark.
