Indian Markets Edge Up Amid Geopolitical Tensions and Sector Shifts

Indian benchmark indices closed slightly higher on Monday after recovering from early losses. Despite cautious market sentiment due to US-Iran geopolitical tensions, indices remained above key support levels. Nifty IT emerged as the top-performing sector, while Nifty Financial Services and others declined. Analysts suggest a buy-on-dips strategy amid consolidation.

Indian stock markets ended Monday's trading session with marginal gains, as the benchmark indices rebounded from early setbacks. The Sensex settled at 77,616.40, up by 47.01 points or 0.06%, and the Nifty concluded at 24,211, a gain of 4.10 points or 0.02%. Despite restrained movement throughout the trading day, the indices maintained their stance above key support levels, reflecting a positive broader market trend.

The market sentiment was overshadowed by escalating tensions between the US and Iran, which drove up crude oil prices. Top gainers on the BSE included TCS, HCL Tech, Infosys, NTPC, Kotak Mahindra Bank, Power Grid, ICICI Bank, and Bajaj Finance. Conversely, Tata Steel, Eternal, IndiGo, Adani Ports, Bharat Electronics (BEL), ITC, and Trent were among the losers. Most sectoral indices ended in negative territory, with Nifty Financial Services, Bank Nifty, and others declining by up to 1%.

Sector-wise, Nifty IT led the gains, advancing by over 3%, while Nifty FMCG dropped more than 1%. Other sectors like Nifty Media and Nifty MidSmall IT & Telecom saw gains exceeding 2% and 1%, respectively. At the time of reporting, Brent crude was pegged at USD 77.33 per barrel, while gold traded at USD 4,072.34. Market experts such as Riyank Arora and Vipin Dixena recommend a buy-on-dips strategy amid current consolidation, cautioning that movements above 24,250 could propel further uptrends, whereas dipping below 24,100 may trigger profit booking.