Dalal Street ends flat as Sensex inches up 40 points, Nifty steady

Mumbai: Dalal Street ended Monday’s session on a flat note, with the BSE Sensex managing a marginal gain of 40 points while the NSE Nifty50 closed unchanged. The lacklustre trading day reflected investor caution as geopolitical developments, particularly US-Iran negotiations, kept risk appetite in check.

Sensex, Nifty close flat

The 30-share Sensex settled at 81,200, up 40 points from the previous close. The broader Nifty50 hovered near the 24,600 mark but failed to hold above it, closing flat for the day. Market participants said volumes were thin, with most sectors trading in a narrow range.

IT and banking stocks provided some support, while auto and pharma shares witnessed mild selling pressure. The rupee remained stable against the US dollar, offering little direction to export-oriented sectors.

US-Iran talks weigh on sentiment

Investors were closely tracking the ongoing US-Iran negotiations, which have the potential to impact global crude oil prices. Any escalation in the region could push oil prices higher, affecting India’s import bill and inflation outlook. The lack of a clear breakthrough in talks kept traders on edge.

Analysts noted that the market had priced in a status quo scenario, leading to the muted response. “The flat close suggests the market is waiting for a catalyst,” said a Mumbai-based equity dealer, adding that the next trigger could come from global cues or domestic earnings.

Sectoral performance mixed

Among sectoral indices, Nifty IT gained nearly half a percent, while bank stocks ended marginally higher. On the other hand, Nifty Auto and Nifty Pharma slipped by 0.2-0.3 percent. Midcap and smallcap stocks outperformed slightly, indicating selective buying in broader markets.

Foreign institutional investors remained net sellers for the session, while domestic institutional investors provided some buying support. This tug-of-war kept the indices range-bound throughout the day.

What lies ahead

Traders now await fresh global cues, especially any update on the US-Iran front. A breakthrough could lift sentiment, while a breakdown might trigger profit-booking. On the domestic front, quarterly earnings from major companies are expected to guide market movement in the coming sessions.

Market experts advise keeping an eye on crude oil prices and the dollar index, as both have a direct bearing on fund flows into emerging markets like India. Until clearer signals emerge, the market is likely to remain in a consolidation phase.