Sensex and Nifty Rise Marginally Amid Hormuz Uncertainty

The Sensex and Nifty ended marginally higher on Monday, with the Sensex advancing 43.27 points to 78,542.44 and the Nifty closing 13.15 points higher at 24,583.80.

The indices remained in a narrow range throughout the day, as investors stayed cautious amid uncertainty over an agreement to reopen the Strait of Hormuz. Buying supported the benchmarks, although losses in PSU banks and consumer goods shares capped gains.

The Nifty continued to face resistance in the 24,600–24,700 zone, with analysts saying a sustained move above 24,700 could strengthen buying momentum and pave the way towards 24,800. On the downside, 24,500 remains the key support, and holding above this level could prevent renewed weakness.

Both benchmarks fluctuated within a limited band before finishing slightly higher, reflecting a wait-and-watch approach as investors sought clarity on the Strait of Hormuz and its implications for energy supplies and economic growth.

Info Edge reported a 43% rise in net profit to ₹490.1 crore and an 11% increase in revenue to ₹880.7 crore for the first quarter of FY27. However, State Bank of India, ITC, and Eternal were among the Nifty laggards, exerting pressure on the indices.

The broader market presented a mixed picture, with the Nifty MidCap index rising 0.62% and the Nifty SmallCap index declining 0.27%. Among sectors, the Nifty PSU Bank index was the weakest performer, falling nearly 2%, while the Nifty Pharma and Nifty FMCG indices also closed lower.

Realty shares, however, attracted buying interest, making the Nifty Realty index the session’s best-performing sectoral gauge. Experts said the absence of a decisive move continued to underline investor caution, but sentiment is expected to remain constructive this week, with the phase of the Q1FY27 earnings season likely to drive stock-specific activity and influence the market trajectory.

The market's performance was also influenced by the geopolitical developments, with investors monitoring the situation in the Strait of Hormuz and its potential impact on crude oil prices, inflation expectations, and global risk appetite.

Overall, the market ended the day on a positive note, but the uncertainty surrounding the Strait of Hormuz and its implications for the global economy continues to weigh on investor sentiment.

The upcoming earnings season is expected to drive the market's trajectory, with investors closely watching the performance of various companies. The market's reaction to the earnings reports will be crucial in determining the direction of the indices in the coming days.

In conclusion, the Sensex and Nifty's marginal rise on Monday reflects the cautious approach of investors amid geopolitical uncertainty. The market's performance in the coming days will depend on various factors, including the earnings season and the developments in the Strait of Hormuz.