Share Markets Dust Off West Asia Concerns, Sensex Over 900 Points Up, Nifty Above 23,350

Indian equity benchmarks began Monday’s session on a weak note but soon recovered some ground in early trade as investors adopted a cautious stance amid escalating geopolitical tensions in West Asia.

The BSE Sensex settled the session above 75,500, rallying close more than 900 points, while the NSE Nifty50 rang the closing bell over 200 points higher and ended beyond 23,350.

Notably, both benchmarks started today's session in marginal losses, before rallying to recovery during the day. Market sentiment remained fragile amid fears that the widening conflict in West Asia could disrupt global energy supplies. Reports of tanker attacks in the Gulf region and concerns about possible disturbances in the Strait of Hormuz, a key transit route for global oil shipments, added to investor unease.

The region’s instability has heightened volatility across financial markets as crude oil prices remain elevated, fuelling worries about inflation and supply disruptions.

Benchmark indices staged a sharp rebound in the final phase of trading, driven largely by gains in financial and automobile stocks. The rally enabled the market to recover from the weakness seen over the previous three sessions.

Among Sensex constituents, HDFC Bank, Mahindra & Mahindra, Eternal and Tata Steel were among the major gainers, helping push the indices higher.

On the other hand, Sun Pharma, Bharti Airtel, HCL Tech and Tata Consultancy Services were among the prominent laggards during the session.

Broader markets lag benchmark rally

Despite the positive close for frontline indices, midcap and smallcap stocks failed to match the momentum seen in large-cap counters.

The Nifty Midcap 100 index ended 0.43 per cent lower, while the Nifty Smallcap 100 declined 0.65 per cent, indicating continued pressure in the broader market segment.

Market participants noted that the divergence between large-cap and broader market stocks highlighted a selective buying approach by investors.

Sectoral performance mixed

Sector-wise, automobile stocks emerged as the strongest performers, with the Nifty Auto index leading the gains during the session.

Financial stocks also contributed to the market’s recovery, as the Nifty Financial Services and Nifty Private Bank indices ended in positive territory.

In contrast, the real estate segment underperformed the broader market, with the Nifty Realty index emerging as the biggest sectoral loser.

Institutional flows remain mixed

Foreign institutional investors (FIIs) continued their selling streak, extending it to the 11th consecutive session on March 13. During this period, they offloaded equities worth more than Rs 10,000 crore.

Domestic institutional investors (DIIs), however, provided some cushion to the market, purchasing shares worth nearly Rs 10,000 crore during the same period.

Geopolitical tensions keep investors cautious

Market experts said investors continued to remain cautious due to persistent geopolitical tensions in West Asia and elevated crude oil prices, which have increased uncertainty in global markets.

“Persistent geopolitical tensions in West Asia and elevated crude oil prices kept investors cautious, leading to sharp sectoral divergence and wide intra-day swings across the market,” an analyst said.

Despite these concerns, strong buying in select sectors helped benchmark indices close the day in positive territory, signalling a partial recovery in sentiment after the recent market decline.

Analysts said sustained FII selling, combined with elevated crude oil prices, rupee weakness and geopolitical risks, has kept overall investor sentiment subdued.