Market indices end on mixed note amid geopolitical uncertainties; Nifty extends losses for third consecutive day

Representational Image. File pic.

The domestic benchmark indices ended on a mixed note on Thursday as elevated crude prices and the standoff between US and Iran over Strait of Hormuz dampened investor sentiment.

"Indian benchmark indices opened on a flat note but remained under pressure throughout the session, with the benchmark trading below key levels. The weekly Sensex expiry kept volatility elevated and resulted in choppy, range-bound price action, with the indices lacking a clear directional move. Selective buying in broader market stocks, however, helped limit the downside," Bajaj Broking Research said.

Buying in the later session helped the Sensex to end in the positive territory, as it advanced 113.61 points, or 0.15 per cent, to settle at 78,079.96. The 50-share NSE Nifty dipped 40.10 points, or 0.16 per cent, to end at 24,395.85, extending its losses for the third straight day.

"Nifty is expected to trade sideways with a marginal negative bias amid escalating geopolitical tensions in West Asia and higher crude prices," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.

On Wednesday, the Sensex shed 187.90 points, or 0.24 per cent, to settle at 77,966.35, while the Nifty slipped 35.75 points, or 0.15 per cent, to end at 24,435.95, weighed down by crude oil prices and selling in Tata Group stocks following Tata Sons Chairman N Chandrasekaran's exit.

From the 30-share BSE Sensex constituents, InterGlobe Aviation, NTPC, Bharat Electronics, Larsen & Toubro, Hindustan Unilever and Eternal were among the winners. ICICI Bank, Titan, Reliance Industries, UltraTech Cement and Infosys were among the major laggards.

"Softer-than-feared inflation readings in both the US and India provided support to investor sentiment, reinforcing expectations that the Fed and the RBI can maintain a patient policy stance in the near term. Yet, elevated crude oil prices remain a key overhang, with geopolitical uncertainty in the Middle East preventing a stronger risk-on move," Vinod Nair, Head of Research, Geojit Investments said.

"Meanwhile, the ongoing earnings season has broadly reinforced confidence in India's underlying demand environment and corporate resilience, helping cushion the impact of external headwinds. In the near term, market direction is likely to be shaped by developments in energy markets, geopolitical risks and the sustainability of foreign capital inflows," Nair said.

Brent crude, the global oil benchmark, declined 1.44 per cent to USD 87.70 per barrel, while Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,002.50 crore on Wednesday, according to news agency PTI.

In Asian markets, South Korea's Kospi and Japan's Nikkei 225 settled higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended lower.

(With inputs from PTI)