Markets dip amid global tensions and mixed performance; TCS, Senco in focus

BSE Sensex was down by 1 per cent, or 739.90 points, to 73,512, while NSE Nifty was at 22,291, down 1 per cent or 223 points.

A total of 3,330 stocks were actively traded, 417 advanced, while 2,812 declined, and 103 stocks remained unchanged. Additionally, 72 stocks hit a 52-week high, and 20 stocks hit a 52-week low at 10 am on Monday.

Avdhut Bagkar Technical and Derivatives Analyst, StoxBox, said, “US markets ended in the red on Friday amid escalating tensions in the Middle East as Iran looked to retaliate against Israel. Moreover, a weak outlook by JPMorgan Chase, the largest bank in the US, dented market sentiment.

• Also read: Index Outlook: Sensex and Nifty 50: Corrective fall possible

With Iran finally striking Israel with drones and missiles over the weekend, tensions continued to mount in the global landscape. However, Asian markets are trading higher this morning as market participants looked confident of a truce in the Middle East after the Biden administration urged Israel not to take retaliatory action against Iran.

We do not expect a major drawdown in Indian equity markets today as investors would react to multiple positive triggers this morning including good numbers from TCS and easing consumer price inflation data on Friday. Strong order book and improved margins from TCS is likely to support the overall IT pack. Also, Senco would be in focus today following strong fourth-quarter business update. Markets will also take cues from the IMD Southwest monsoon forecast and WPI data likely to be released later today.

The 50 index ended the previous week by adding a distribution day. It, however, closed 5 points higher than the previous week’s closing. While most indices and sectors remain in a confirmed uptrend on improving momentum, the market breadth pertaining to momentum participation stocks saw a downward-slopping trajectory for the week on subdued market breadth volume.”

He further added, “This potentially indicates an interim paucity of demand at higher levels. We anticipate the index to trend sideways unless it decisively reclaims the all-time high mark while continuing to offer opportunities in selected pockets.”

Major gainers on the NSE at 10 am include Hindalco (1.94 per cent), ONGC (1.62 per cent), TCS (0.84 per cent), Nestle India (0.59 per cent), and HCL Tech (0.15 per cent). Major losers include BPCL (-3.21 per cent), Coal India (-2.40 per cent), Tata Consumers (-2.32 per cent), Tata Motors (-2.31 per cent), and Adani Enterprises (-2.24 per cent).

BSE Smallcap was down by 1.99 per cent and Midcap up down by 1.33 per cent.

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