Stock markets recover losses to close flat; IT shares cushion decline amid flare-up in West Asia tensions

Mumbai, Jul 13 (PTI) Benchmark indices Sensex and Nifty recovered from early lows to close marginally higher in a volatile trade on Monday as buying in IT and consumer durable shares helped offset the impact of rebounding crude oil prices and escalation in West Asia tensions. After a weak start, the 30-share BSE Sensex closed higher by 47.01 points, or 0.06 per cent, to settle at 77,616.40, marking its third straight day of gains. The index opened sharply down by over 711 points and hit a low of 76,857.43 in early trade. However, buying in IT shares such as TCS and Infosys and consumer durables helped pare losses, with the Sensex rebounding around 931 points from the low to hit a high of 77,789.29. Profit booking in the last hour erased the gains. The 50-share NSE Nifty eked out an uptick of 4.10 points, or 0.02 per cent, to end at 24,211, registering its third day of gains. The index hit a low of 24,000.20 and a high of 24,259.8 during the day. Resilience in IT and consumer durables stocks helped offset the impact of geopolitical concerns, enabling the benchmark indices to recover from early losses and close on a largely flat note, an expert said. From the Sensex pack, Tata Consultancy Services jumped 5.43 per cent to emerge as the top gainer, while HCL Tech climbed 5.02 per cent, Tech Mahindra 3.34 per cent, Infosys 3.17 per cent, NTPC 2.18 per cent and Kotak Mahindra Bank 1.83 per cent. Tata Steel, Eternal, InterGlobe Aviation, Maruti, UltraTech Cement and Bharat Electronics were among the laggards. Brent crude, the global oil benchmark, jumped 2.57 per cent to USD 77.96 per barrel. "Indian equity markets ended largely flat after opening on a weak note, as investors adopted a wait-and-watch approach amid escalating geopolitical tensions between the United States and Iran. Continued hostilities around the Strait of Hormuz, which have disrupted oil tanker movements and pushed crude oil prices sharply higher, kept overall market sentiment cautious," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said. In Asian markets, South Korea's Kospi slumped 8.95 per cent. Japan's Nikkei 225 and Shanghai's SSE Composite index also ended lower, while Hong Kong's Hang Seng index settled marginally higher. Markets in Europe were trading mixed. US markets ended higher on Friday. "Markets witnessed a volatile session on Monday and ended almost unchanged amid mixed global cues. Investor sentiment remained cautious amid renewed geopolitical tensions in the Middle East, which pushed Brent crude prices higher and weighed on global risk appetite," Ajit Mishra – SVP, Research, Religare Broking Ltd, said. However, resilience in the IT pack following the start of the earnings season, coupled with selective buying in heavyweight stocks across sectors, helped the market recover from its intraday lows, he added. The BSE MidCap Select index went up by 0.51 per cent, while SmallCap Select index dipped marginally by 0.03 per cent. Among sectors, IT surged 3.49 per cent, Focused IT (3.30 per cent), Consumer Durables (0.59 per cent), Utilities (0.35 per cent), Auto (0.31 per cent) and Bankex (0.15 per cent). Telecommunication declined 0.96 per cent, FMCG (0.82 per cent), Metal (0.69 per cent), Commodities (0.65 per cent) and Industrials (0.49 per cent). A total of 2,335 stocks advanced, while 2,068 declined and 189 remained unchanged on the BSE. Foreign Institutional Investors (FIIs) bought equities worth Rs 2,603.72 crore on Friday, according to exchange data. On Friday, the Sensex jumped 827.57 points, or 1.08 per cent, to settle at 77,569.39. The Nifty surged 244.10 points, or 1.02 per cent, to end at 24,206.90. PTI SUM MR