Sensex Rebounds 400 Points, Nifty Falls Below 24,400 Amid Volatility and Rising Crude Oil Prices

Market Volatility Persists Amid Elevated Crude Oil Prices and Geopolitical Tensions

The Indian equity market witnessed a mixed day on Monday, with the Sensex and Nifty paring a significant part of their early gains in afternoon trade. The Sensex was up by 111 points or 0.14 percent at 78,605 at 1:30 pm, while the Nifty rose 38 points to 24,391.

Volatility remained elevated throughout the session, with India VIX rising nearly 9 percent, indicating heightened nervousness among market participants. The inability of the indices to hold early gains suggests selling pressure at higher levels. Market breadth remained weak, with 2,221 shares declining against 1,730 advancing, pointing to underlying softness despite marginal gains in the benchmarks.

The benchmarks had surged earlier in the day, with the Sensex rising over 400 points and the Nifty nearing the 24,450 mark, supported by gains in PSU banks and energy stocks. However, the indices failed to sustain higher levels and pared gains as investors turned cautious amid elevated crude oil prices and uncertainty around developments in the Middle East.

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Crude oil prices remained elevated after a sharp rebound, with Brent crude hovering near the $95-98 per barrel range following renewed tensions around the Strait of Hormuz. The spike in oil prices has raised concerns over inflation and external balances, limiting the upside for domestic equities.

Global cues also remained mixed. While US markets had recently touched record highs, futures traded lower, and Asian markets showed a mixed trend, reflecting caution as investors assessed geopolitical developments and their potential impact on global growth and energy supplies.

Back home, sectoral trends were mixed. Nifty Energy rose 1.23 percent and the Oil & Gas index gained 0.54 percent, while the PSU Bank index advanced 0.95 percent, providing support to the market. Nifty Auto and FMCG indices also traded marginally higher. On the other hand, Nifty IT declined 0.41 percent, Nifty Realty fell 0.53 percent, and Nifty Metal remained under pressure.

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Among stocks, Trent led gains with a rise of over 3.8 percent, followed by JSW Steel, SBI, Asian Paints, NTPC, and Adani Enterprises. Grasim and Tata Consumer Products also traded higher. On the downside, Hindalco, Larsen & Toubro, Tata Motors Passenger Vehicles, Titan Company, and Kotak Mahindra Bank were among the key laggards.

Broader markets showed a mixed trend, with the Nifty Midcap 100 largely flat and the Nifty Smallcap 100 down 0.29 percent, indicating selective participation beyond large-cap stocks.