Indian Stocks Stagnate Amid Geopolitical Tensions and Economic Data Anticipation

The Indian stock market experienced a flat day, with Sensex and Nifty indices closing lower due to mixed domestic and global factors. Analysts suggest the market remains bullish, despite caution over rising oil prices and key economic releases, advising traders to adopt a strategy of buying on dips.

The Indian stock market concluded its trading session on Monday with minimal movement as major indices ended the day nearly flat. The Sensex decreased by 177.12 points to settle at 81,531.99, while the Nifty dropped 52.05 points, closing at 24,625.75.

Within the Nifty group, 19 stocks advanced, 30 declined, and one stayed unchanged. Top gainers included Wipro, L&T, SBI Life, Tata Steel, and BPCL. In contrast, Tata Consumer Products, Hindustan Unilever, Tata Motors, Nestle, and Asian Paints suffered the largest losses. Vinod Nair, Head of Research at Geojit Financial Services, explained that a combination of domestic and global influences contributed to the day's restrained trading.

"The domestic market showed range-bound behavior post last week's surge. Increasing oil prices amid Middle East tensions and investor caution ahead of significant economic developments, such as the India & US CPI data and ECB policy announcements, influenced market sentiment. Meanwhile, there was some buying interest in capital goods and metals, anticipating a Chinese stimulus following unexpected inflation data," he stated. Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided a technical outlook.

"Technically, the weekly charts reveal a long bullish candle and a higher bottom formation, with the index successfully maintaining above the 50-day Simple Moving Average," Chouhan remarked. "Although the market exudes a bullish texture, temporary overbought conditions may lead to range-bound activity shortly. Thus, short-term traders are advised to buy on dips and sell on rallies," he added.

The market's cautious undertone emerged as investors prepared for upcoming crucial economic data, including CPI figures from India and the US, and a policy decision from the European Central Bank later this week. Geopolitical tensions, underscored by rising oil prices, further complicated the market landscape. Despite the overarching bullish trend, analysts recommend a cautious approach, emphasizing technical indicators and macroeconomic signals for guidance. (ANI)

(With inputs from agencies.)