Image Credit source: Google Gemini
There were a lot of ups and downs in the stock market throughout the day. Sensex and Nifty were seen under pressure in the initial session. But later there came a time when the Sensex was seen trading with a rise of about 740 points from the day’s lower level and more than 449 points as compared to the last trading day of last week. But about 15 minutes before market closing, the stock market once again experienced the eclipse of Hormuz and Sensex and Nifty lost all their gains and closed on a flat but positive note. At market close, the Sensex stood at 78,520 with a gain of 27 points or 0.03 per cent. While NSE Nifty 50 rose 11 points and closed at 24,365.
Market breadth remained weak. As against the gain in 1,733 shares, a decline was recorded in 2,471 shares, while there was no change in 175 shares. This shows that despite the major indices remaining almost stable, there was internal selling pressure in the market. Market volatility also increased. India VIX rose more than 10 percent to 19.01, reflecting growing nervousness among investors.
At the sectoral level, trends remained mixed. A rise of 0.78 percent was recorded in Nifty Energy and 0.21 percent in Oil & Gas index. At the same time, PSU Bank index rose by 0.87 percent, which provided some support to the benchmark indices. Nifty Auto also closed with gains. On the other hand, Nifty IT declined by 0.70 percent, while Nifty Realty, Metal and FMCG indices also closed in the red.
If we talk about stocks, among the gainers, Trent rose by more than 3 percent, while strong buying was also seen in JSW Steel, SBI and Asian Paints. NTPC, Grasim, Bajaj Finance and Tata Consumer Products were among the other major gainers. On the other hand, Hindalco, Tata Motors Passenger Vehicles, Larsen & Toubro, HDFC Life and HCL Tech weighed on the index, while Kotak Mahindra Bank and Wipro also declined. Let us also tell you what are those 6 reasons due to which Sensex and Nifty lost all their gains 15 minutes before the market closed.
For what reasons did the stock market lose its gains?
- Oil prices rise after Hormuz blockage: Crude oil prices rose sharply after Iran reimposed control over the Strait of Hormuz, reversing Friday’s decline. Brent crude remained near the range of $95-98 per barrel, raising concerns about supply disruptions and inflation risks for India.
- Vigilance in global stock markets: US stock futures fell despite Wall Street recently hitting record highs, while Asian markets were mixed. Investors remained cautious amid uncertainty over the direction of US-Iran talks and ceasefire.
- Disruption in shipping route: Renewed tensions between the US and Iran over the weekend, including the blockage of shipping routes through the Strait of Hormuz, undermined confidence in the ceasefire process. The next few days will be very important for global markets.
- 10 percent jump in India VIX: The India VIX rose more than 10 percent during the session, indicating increased volatility, as investors reacted to geopolitical risks and sharp fluctuations in crude oil prices. VK Vijayakumar, chief investment strategist at Geojit Investments, said the ongoing “escalation drama” in West Asia will keep markets volatile in the near future.
- FII selling: Foreign institutional investors (FIIs) have been net buyers in recent sessions, but analysts warn that rising geopolitical risks could trigger capital outflows again. Domestic institutional investors (DIIs) have been selling continuously, which has further increased the uncertainty of the near future.
- Earning Season: The ongoing Q4 earnings season continues to put a special focus on stocks, with investors keeping an eye on management comments and earnings results to get signals about demand and the future outlook.
