Sensex falls 150 points, Nifty hovers near 24,000 after US strikes in Southern Iran

Sectoral trends mixed as IT and metal stocks gain, others slip. Representational Image

Indian equity markets traded flat in morning trade on Tuesday after fresh US strikes in southern Iran targeting boats attempting to lay mines and missile launch sites.

In early trade, Sensex was at 76,339.29, down 150 points or 0.20 per cent, while Nifty slipped 45 points or 0.19 per cent to 23,986.40. Earlier in the day, the benchmark indices opened at 76,224.14 and 24,004.10, respectively.

Among sectoral indices, IT, chemicals, media, PSU banks and metal stocks traded in positive territory.

Nifty IT rose 0.61 per cent, while Nifty Chemicals gained 0.58 per cent and Nifty Media advanced 0.54 per cent.

On the downside, consumer durables, healthcare, cement and realty indices were under pressure. Nifty Consumer Durables emerged as the top sectoral loser, falling 0.57 per cent, while Nifty Healthcare, Nifty Cement and Nifty Realty declined up to 0.3 per cent.

From the Nifty basket, InterGlobe Aviation (IndiGo) declined over 1 per cent, emerging as one of the top laggards on the benchmark indices. Other notable losers included SBI Life Insurance Company, Max Healthcare Institute, Titan Company, Bharti Airtel, Eternal Ltd and Trent, which fell up to 1 per cent.

In the broader market, small-cap and mid-cap indices outperformed. Nifty Smallcap 100 climbed 0.59 per cent, while Nifty Midcap 150 gained 0.13 per cent.

Meanwhile, the volatility tracker India VIX slipped 1.43 per cent.

Market experts said that despite ongoing negotiations aimed at ending the West Asia conflict, there are no indications of an immediate resolution.

They noted that the recent US "self-defence strikes" in southern Iran have temporarily dampened sentiment, although markets are not viewing the development as the beginning of another phase of military escalation.

According to experts, investor risk appetite remains strong, with markets rallying whenever there are signs of easing tensions and a decline in crude oil prices.

"The sharp rally in the previous session reflected optimism about the resilience of the domestic economy," they added.

However, experts believe that a resolution of the conflict and a further decline in crude oil prices could help ease macroeconomic pressures facing the economy.

Meanwhile, crude oil prices rose, with international benchmark Brent crude gaining 1.17 per cent to USD 98.39 a barrel, while US West Texas Intermediate (WTI) crude climbed more than 3 per cent to USD 93.90 per barrel.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.