Nifty, Sensex close higher as softer crude prices ease market worries

MUMBAI: The equity markets closed higher on Tuesday, supported by a moderation in crude oil prices and bond yields after the much-anticipated US sanctions against Iran fell short of market expectations. The Nifty 50 index closed at 24,260.05, gaining 41 points or 0.17 per cent, while the BSE Sensex ended at 77,529.94, up 160.83 points or 0.21 per cent.

Vinod Nair, Head of Research, Geojit Investments Limited, said easing in crude oil prices and bond yields provided some relief to investors. “The much-anticipated U.S. sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks. This relief in energy costs aided a moderately positive close today on the monthly expiry day,” Nair said.

He added that healthcare and financial stocks outperformed the broader market as investors moved towards defensive and domestic-oriented sectors, while there were signs of some stability in the domestic bond market.

Among sectoral indices on the NSE, Nifty Consumer Durables gained 0.76 per cent, followed by Nifty Healthcare, which rose 0.72 per cent. Nifty Pharma and Nifty PSU Bank each gained 0.56 per cent, while Nifty Media rose 0.46 per cent. Nifty Auto also gained 0.11 per cent.

On the other hand, Nifty Metal declined 0.59 per cent, Nifty Private Bank fell 0.31 per cent, Nifty Realty declined 0.05 per cent and Nifty Oil and Gas slipped 0.06 per cent. Nifty IT also declined marginally by 0.06 per cent.

Among Nifty 50 stocks, Adani Enterprises, Max Healthcare, IndiGo and Apollo Hospital were among the top gainers. Cipla, Hindalco, ONGC, Wipro, Coal India and Tata Steel were among the top losers.

Brent crude oil prices moderated by more than 3 per cent on Tuesday and were trading at USD 89.26 per barrel at the time of reporting. Gold remained elevated at Rs 1,62,910 per 10 grams for 24-karat gold, while silver was trading at Rs 2,42,550 per kg. The rupee strengthened today, closing at Rs 95.41 per US dollar, compared with Rs 95.75 per US dollar on Monday.

Riyank Arora, Associate Vice President-HNI & Derivatives, Hedged.in said, “The market’s ability to build on recent gains speaks to underlying strength. The broader trend remains firmly in the bulls’ favour as long as supports hold. Buying into dips in fundamentally strong names, with proper risk controls, remains our preferred approach”.

In Asian markets, Japan’s Nikkei 225 gained 0.44 per cent to close at 65,820, Singapore’s Straits Times rose 0.97 per cent to 5,725, Taiwan’s weighted index gained 0.90 per cent to 45,169, and South Korea’s KOSPI rose 0.68 per cent to 6,742. Hong Kong’s Hang Seng index closed marginally lower by 0.02 per cent at 25,513. (ANI)