Nifty 50 Recovers from Day Low, Trades Above 24,000 Mark; Sensex Down 550 Points

Market Update at 2:25 PM: Indian equity benchmarks remained under pressure on Thursday, tracking weakness in global markets as rising geopolitical tensions between the U.S. and Iran pushed crude oil prices higher. Investor sentiment stayed cautious amid concerns over inflation and economic stability due to elevated energy prices.

The Nifty 50 was trading 0.78 per cent lower, down 187.55 points at 23,990.10 as of 14:22 IST. The Sensex declined 0.74 per cent, or 572.47 points, to 76,923.89. The decline continued to be broad-based, with selling pressure visible across key sectors.

Market Update at 12:13 PM: Indian equity benchmarks declined sharply on Thursday, tracking weakness in global markets as rising geopolitical tensions between the U.S. and Iran pushed crude oil prices higher. Investor sentiment remained under pressure amid concerns over inflation and economic stability triggered by the surge in energy prices.

The Nifty 50 fell 1.39 per cent, or 332 points, to 23,842.70, while the Sensex dropped 1.40 per cent, or 1,007.48 points, to 77,414.13 during the session. The decline was broad-based, with heavy selling seen across key sectors.

Among the Top Losers in the Nifty 50 index were Eternal, InterGlobe Aviation, and Adani Ports & Special Economic Zone, reflecting pressure in aviation and infrastructure-linked stocks.

The overall market capitalization of BSE-listed companies witnessed a sharp erosion, falling by Rs 8.38 trillion to Rs 459.86 trillion from Rs 468.24 trillion in the previous session, highlighting the extent of the sell-off.

Market volatility also spiked significantly, with the Nifty India Volatility Index rising 10.8 per cent to 19.32, indicating heightened uncertainty and nervousness among investors in the near term.

Broader markets mirrored the weakness in benchmark indices. The Nifty MidCap index declined 1.66 per cent, while the Nifty SmallCap index slipped 1.31 per cent, suggesting widespread selling pressure beyond Large-Cap stocks.

On the sectoral front, the Nifty Realty and Nifty Auto indices were the worst hit, bearing the brunt of the sell-off. In contrast, the Nifty IT index showed relative resilience and recorded the smallest decline among sectoral indices.

The sharp rise in crude oil prices remained a key trigger for the market downturn. Brent crude surged after reports indicated that the U.S. rejected Iran’s peace proposal and moved to intensify the blockade at the Strait of Hormuz. The April futures contract was quoted at USD 124.8, up 5.74 per cent on the Intercontinental Exchange, raising concerns over supply disruptions and higher input costs globally.

Market Update at 09:35 AM: Indian equity benchmarks declined sharply, tracking weakness in global markets after the U.S. Federal Reserve’s hawkish pause dampened investor sentiment.

The Nifty 50 was trading 0.9 per cent, or 210.15 points lower at 23,964.70, while the Sensex fell 709 points, or 0.91 per cent, to 77,790.73.

Broader markets mirrored the weakness in frontline indices. The Nifty MidCap index slipped 1.06 per cent, while the Nifty SmallCap index declined 0.46 per cent, indicating selling pressure across segments.

Among sectoral indices, realty and auto stocks bore the brunt of the sell-off. The Nifty Realty and Nifty Auto indices emerged as the worst performers. In contrast, the Nifty Chemical and Nifty IT indices showed relative resilience, falling the least among peers.

Investor sentiment was further impacted after the U.S. Federal Open Market Committee voted 8-4 to keep the federal funds rate unchanged in the range of 3.5–3.75 per cent. While the pause was largely anticipated, the sharp division among policymakers surprised markets and added to uncertainty.

Meanwhile, crude oil prices surged, intensifying concerns around inflation and global growth. Brent crude crossed the crucial USD 120 per barrel mark after reports indicated that the U.S. rejected Iran’s peace proposal and plans to intensify the blockade at the Strait of Hormuz. The April futures contract was quoted at USD 122.43, up 3.73 per cent.

In the commodities segment, safe-haven demand remained strong. Gold futures rose 0.70 per cent, while silver futures gained 1.80 per cent, reflecting heightened risk aversion among investors.

Pre-Market Update at 7:44 AM: The benchmark Indian indices, Sensex and Nifty 50, are likely to start Thursday’s session on a weaker note, tracking negative global cues. Investor sentiment remains cautious amid a deadlock in U.S.–Iran negotiations, which has pushed crude oil prices sharply higher, along with a hawkish pause by the U.S. Federal Reserve.

Rising crude oil prices have reignited market anxiety as geopolitical tensions intensify. Gift Nifty is trading 50 points lower, reflecting subdued sentiment. WTI crude has surged near USD 120 per barrel, gaining over 15 per cent this week alone. Since the onset of the conflict, crude prices have rallied over 60 per cent, highlighting the scale of disruption in global energy markets.

A major concern remains the effective closure of the Strait of Hormuz, a critical route for global oil shipments, significantly disrupting energy flows. U.S. President Donald Trump stated that the United States will continue its naval blockade on Iran until a nuclear agreement is reached, while Iran has warned of retaliation if the blockade persists. Asian markets traded in the red, while U.S. equities ended on a mixed note following the Federal Reserve’s policy decision and earnings from major technology companies.

The U.S. Federal Reserve kept interest rates unchanged for the third consecutive meeting at 3.5 per cent–3.75 per cent. Fed Chair Jerome Powell indicated that the inflationary impact of rising energy prices remains uncertain. Following the hawkish tone, U.S. Treasury yields surged, with the 2-year yield rising to 3.928 per cent and the 10-year yield climbing to 4.421 per cent, marking their highest levels since late March. Japanese government bond yields also rose, with the 10-year yield hitting 2.500 per cent, its highest since 1997.

In commodities, Brent crude advanced to USD 120 per barrel, while WTI crude rose to USD 107.51, extending gains. The U.S. dollar remained firm near a two-week high, with the dollar index at 98.852. Meanwhile, gold prices rebounded from a one-month low, rising 0.6 per cent to USD 4,566.73 per ounce.

From a derivatives perspective, the Put-Call Ratio (PCR) for Nifty 50 stands at 0.93. On the Put side, significant open interest is concentrated at the 24,000 strike, indicating strong support. On the Call side, notable open interest addition was seen at 24,300 and 24,500 strikes, marking key resistance zones, with heavier concentration at 24,500 and 25,000 levels.

Technically, the Nifty 50 maintains a positive bias as long as it holds above the crucial support level of 23,813. On the upside, 24,340 remains a key resistance level. A decisive breakout above this level could confirm a bullish flag pattern, potentially driving the index towards 24,600 and 24,750 in the near term.

No stocks are under the F&O ban for the day. On April 29, Foreign Institutional Investors were net sellers, offloading equities worth Rs 2,468.42 crore, while Domestic Institutional Investors bought shares worth Rs 2,262.17 crore.

On Wednesday, the Indian stock market pared gains from Intraday highs but ended in positive territory. The Sensex rose 609.45 points, or 0.79 per cent, to close at 77,496.36, while the Nifty 50 gained 181.95 points, or 0.76 per cent, to settle at 24,177.65.

Wall Street ended mixed, with the Dow Jones Industrial Average falling 280.12 points, or 0.57 per cent, to 48,861.81. The S&P 500 slipped 0.04 per cent to 7,135.98, while the Nasdaq Composite edged up 0.04 per cent to 24,673.24. Among stocks, Nvidia declined 1.79 per cent, AMD gained 4.30 per cent, and Intel surged 12.06 per cent. Tesla fell 0.86 per cent, while in after-hours trade, Alphabet rose 7.05 per cent, Amazon gained 2.74 per cent, Microsoft edged up 0.34 per cent, and Meta declined 7.01 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.

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