Sensex, Nifty trade lower amid fresh geopolitical tensions

MUMBAI: The Indian equity markets opened on a cautious note on Thursday after witnessing a sharp rally in the previous session. Benchmark indices declined amid investor concerns over escalating geopolitical tensions, as reports suggested that Israel had attacked Lebanon’s Hezbollah, raising fears of a possible disruption in the Strait of Hormuz.

Sensex traded 560 points or 0.72 per cent lower at 77,003, hitting an intra-day low in early trade, while Nifty fell as much as 182 points or 0.75 per cent to 23,815, also logging an intra-day low. Sectorally, IT, realty, banking, and auto stocks were among the top laggards, declining up to 1 per cent.

Among the Nifty pack, Infosys, Shriram Finance, HCL Tech, Bajaj Finance, IndiGo, Tech Mahindra, Axis Bank, and M&M were the top losers.

According to analysts, traders should adopt a cautious approach, prefer a ‘buy on dips’ strategy near support levels, and avoid aggressive long positions at higher levels.

“This ongoing divergence between foreign and domestic flows continues to play a key role in market stability,” they added.

Analysts further noted that India VIX cooled sharply to around 19.69, indicating a decline in volatility, although markets may still witness intraday swings.