SMIDs show resilience as benchmarks slide amid geopolitical tensions

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The broader market showed some resilience even as benchmark equity indices traded lower, with Dalal Street investors remaining cautious after the US struck three nuclear facilities in Iran, siding with Israel in the ongoing geopolitical conflict in West Asia. The benchmark indices, which logged their worst fall since June 13 this year, have recouped some losses from their intraday lows but continue to trade in the red.

 

At last check, the BSE Sensex was trading at 81,873.96, down 534.21 points or 0.65 per cent. The index was 397 points above its intraday low of 81,476.76, having traded in the range of 81,476.76 – 81,984.44 so far today.

 

The NSE Nifty50, on the other hand, recovered 127.45 points from its day’s low to trade at 24,952.30, down 160.10 points or 0.64 per cent from its previous close. The index has fluctuated in the range of 24,824.85 – 24,988.10 during the session.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

From the Sensex pack, barring six stocks—Bharat Electronics (up 2.78 per cent), Trent (up 2.78 per cent), Adani Ports (up 0.83 per cent), Bajaj Finance (up 0.76 per cent), Bharti Airtel (up 0.20 per cent), and Enternal (up 0.16 per cent)—all other 24 constituent stocks were trading lower, dragged by Infosys, HCL Technologies, Hindustan Unilever, Mahindra & Mahindra, Larsen & Toubro, and Tata Consultancy Services (TCS), which were trading lower in the range of 2.31 per cent - 1.23 per cent.

Market breadth turns negative

The market breadth turned negative as 1,546 out of 2,767 traded stocks on the NSE were trading lower, while 1,142 traded with gains, and 79 remained flat.

 

As many as 32 stocks were quoted slipping to their 52-week lows, while the same number of stocks touched their 52-week highs on the NSE. The number of stocks hitting their lower circuits on the NSE stood at 82, while 52 were quoted touching their upper limit.

Broader markets outperform benchmark

Among the broader market indices on the NSE, the Nifty Smallcap100 was outperforming others, trading higher by 0.40 per cent, led by Kfin Technologies and Zen Technologies, which ended higher by 5 per cent each.

 

Meanwhile, the Nifty Midcap100 index was trading higher by 0.12 per cent, led by Glenmark Pharmaceuticals (up 3 per cent), Polycab India (up 3 per cent), and 2.63 per cent.

Sectoral markets trade lower

Barring the Nifty Metal and Media indices, all other sectoral indices on the NSE were trading lower. Among them, the Nifty IT index was the top laggard, trading lower by 1.46 per cent, dragged by Infosys (down 2.48 per cent), HCL Technologies (down 1.7 per cent), and Wipro (down 1.5 per cent).   The other sectoral indices on the NSE traded lower, falling in the range of 0.13 per cent to 0.90 per cent.

Experts' view

The market decline today, Vinit Bolinjkar, Head of Research at Ventura, said, reflects heightened geopolitical tensions, following Iran’s closure of the Strait of Hormuz in retaliation for US-led nuclear strikes on its facilities. "As a vital route for nearly a fifth of global oil trade, the Strait’s shutdown has driven crude prices higher and shaken investor sentiment globally."

 

"While short-term volatility is likely to persist, long-term investors should remain focused on fundamentals and selectively explore value in the current correction," said Bolinjkar.

 

From a technical perspective, Devarsh Vakil, Head of Prime Research at HDFC Securities, said the support levels for the Nifty50 have shifted upwards to 24,800 levels. The immediate resistance, Vakil said, is now placed at 25,222 levels.