Sensex, Nifty End Flat After Volatile Session As IT Rally Offsets West Asia Jitters

The benchmark indices Sensex and Nifty recovered from sharp early losses to end little changed on Monday as value buying in heavyweight stocks and sustained foreign investor inflows offset concerns over escalating tensions in West Asia and higher crude oil prices.

The Sensex gained 47.01 points, or 0.06%, to close at 77,616.40, while the Nifty 50 edged up 4.10 points, or 0.02%, to settle at 24,211. Both indices had opened sharply lower before trimming losses through the session.

Among the top gainers on the Nifty, TCS surged 5.37%, followed by HCLTech, Tech Mahindra, Infosys and Bajaj Auto. On the losing side, Tata Steel fell 2.16%, while Nestle India, Grasim Industries, InterGlobe Aviation (IndiGo) and Eternal also ended lower.

IT Stocks Lead Recovery

Sectorally, the Nifty IT index emerged as the biggest gainer, rallying 3.5%, aided by strong buying in frontline software companies. The Nifty Media index gained 2%, while Consumer Durables advanced 1%. Auto, Private Bank and Bank indices also ended in positive territory.

On the other hand, the Nifty FMCG index declined 0.99%, followed by the Metal index, which fell 0.74%. Infrastructure, Realty, Pharma and Energy indices also closed in the red.

The broader market was relatively subdued, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending largely flat.

Value Buying And FII Inflows Cushion Market

The market recovered after investors lapped up stocks at lower levels following the sharp decline at the open, which was triggered by renewed concerns over widening geopolitical tensions in West Asia and a spike in crude oil prices.

Investor sentiment also drew support from continued foreign buying. Foreign Institutional Investors (FIIs) purchased equities worth ₹2,603.72 crore on Friday, extending the positive trend seen since early July.

Foreign portfolio investors have invested ₹5,155 crore through the secondary market so far this month. Including investments under the primary market and other categories, total FPI inflows during the period stand at ₹15,156 crore.

Analysts See Consolidation, Not Reversal

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the market's flat close reflects consolidation following the recent rally rather than a reversal in trend.

He said the Nifty continues to hold above the 24,200 level, with immediate support placed at 24,100-24,050 and resistance at 24,300-24,400. For the Sensex, support is seen in the 77,300-77,100 zone, while resistance lies between 77,800 and 78,000. Arora added that the broader outlook remains constructive as long as key support levels hold, and investors may continue to adopt a buy-on-dips strategy.

Rupee Weakens On Higher Crude

The Indian rupee weakened 0.26% to around 95.60 against the US dollar as the more than 4% jump in crude oil prices raised concerns over India's import bill and weighed on the domestic currency.

Jateen Trivedi, Vice President – Research Analyst (Commodity & Currency) at LKP Securities, said renewed US-Iran tensions also supported the US dollar, keeping pressure on emerging market currencies. He added that markets will closely monitor upcoming US inflation data and FII flows for further direction. According to Trivedi, the rupee is expected to trade in the 95.20-96.00 range in the near term, while a failure of Brent crude to sustain above the $80-82 per barrel zone could provide support to the domestic currency.