Benchmark stock market indices reversed early losses to trade higher on Monday despite fears of fresh retaliation in the West Asia war, with crude oil prices also surging.
The S&P BSE Sensex was up 168.96 points to 78,662.50, while the NSE Nifty50 gained 21,05 points to 24,374.60 as of 9:30 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that within the deescalation- escalation drama in the West Asian conflict continuing, the market will remain volatile in the near-term.
“With Iran hardening its position again, closing the Strait of Hormuz and threatening to retaliate to US’ seizure of an Iranian ship ‘violating the US blockade’, there is potential for a flare-up in the conflict when the ceasefire ends on April 22,” he added.
After the opening bell, State Bank of India Ltd led the Sensex gainers, rising 2.10%. It was followed by ICICI Bank Ltd, which gained 1.58%. Trent Ltd moved up 0.78%, while Axis Bank Ltd added 0.57%. NTPC Ltd also opened higher, rising 0.50%.
On the losing side, Eternal Ltd saw the sharpest fall, dropping 1.52%. Indigo Ltd declined 1.20%, Tata Steel Ltd was down 1.01%, Mahindra and Mahindra Ltd slipped 1.00%, and HDFC Bank Ltd fell 0.94% in early trade.
“The market signals do not reflect renewed concern and flare up of the conflict. Even though Brent crude has spiked back to $ 95 levels from below $90 on Friday, there is no panic in the crude market,: said Vijaykumar.
“A significant trend in the market now is the outperformance of the broader market. Nifty Midcap and Nifty Smallcap indices are back to pre-war levels. This is in contrast to Nifty which is still 4% below pre-war levels. Market is responding positively to good results from the broader market space,” he added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)