Sensex rises 600 pts from day's low, Nifty reclaims 25,000; Trent, BEL, metal stocks lead recovery

Laggards on the index included Infosys, HCL Tech, Hero MotoCorp, L&T, and M&M.

Benchmark indices Sensex and Nifty trimmed early losses to trade with milder cuts on Monday, as a sharp rebound in midcaps, smallcaps, metals, and PSU stocks lent support in the afternoon session. However, weakness in auto and IT stocks persisted, weighed down by renewed geopolitical tensions after a US strike on Iranian nuclear facilities reignited fears of a wider conflict, unsettling global sentiment.

At 1:40 pm, the Sensex was down 346.04 points or 0.42 percent at 82,062.13, and the Nifty was down 85.60 points or 0.34 percent at 25,026.80. About 1537 shares advanced, 1982 shares declined, and 146 shares remained unchanged.

"Markets are navigating these developments reasonably well, with major indices avoiding significant damage. However, we cannot discount the possibility of unpredictable contagion effects across global markets if hostilities continue to escalate," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

Market experts also say that even though the possibility of the closure of the Hormuz Strait is a threat, it is unlikely that it will materialise. "The fact is that the closure of the Hormuz Strait will harm Iran and Iran’s friend China more than anyone else. The market construct continues to favour a ‘buy on dips’ strategy," says V K Vijayakumar, Chief Investment Strategist at Geojit Investment.

Also read: India Vix rises up to 5% to reflect Middle East jitters but still lower than June highs

Sectoral performance on the NSE was mixed, with notable gains in select pockets offsetting weakness in others. Nifty Media led the gainers, rallying 3.71 percent, followed by Nifty Metal, which rose 1.02 percent. Consumer Durables gained 0.92 percent, while Midcap and Smallcap indices advanced 0.52 percent and 0.71 percent, respectively. Modest gains were also seen in Energy, Pharma, Oil & Gas, Realty, and PSU Bank indices.

On the flip side, Nifty IT declined 1 percent, dragging down sentiment, while Auto slipped 0.75 percent and FMCG fell 0.39 percent. Bank-related indices were largely flat. Meanwhile, market volatility edged higher, with India VIX rising 2.85 percent to 14.06.

The information and technology gauge Nifty IT sank over 1 percent after U.S.-based IT bellwether Accenture reported its earnings for the May quarter, flagging lower growth going ahead, along with rising uncertainties.

Defence major Bharat Electronics rose 3 percent, hitting a fresh record high on June 23 after the company secured additional orders worth Rs 585 crore. The said orders include fire control and sighting systems for missiles, communication equipment, jammers, spares, services etc.

Read more: Iran may close Strait of Hormuz: How rising oil prices would hit India

Shares of two-wheeler maker Ola Electric Mobility Ltd sank 6 percent after the auto player saw a large trade worth Rs 107 crore. Around 2.41 crore shares, equaling 0.55 percent of the total equity in the firm, worth Rs 107 crore were exchanged at Rs 44 per share. This comes as a 4.5 percent discount to the previous session's closing price of Rs 46.08 on the NSE. Moneycontrol could not immediately ascertain the buyers and the sellers in the deal.

Bajaj Auto, TVS Motor and Hero MotoCorp slipped by up to 2 percent after the transport ministry made anti-lock braking systems (ABS) mandatory for all new scooters and motorcycles. International brokerage Nomura expects India’s two-wheeler demand to decline by 2–4 percent, as the government moves to mandate Anti-lock Braking Systems (ABS) across all domestic models, including entry-level variants.

"From a technical perspective, the Nifty50 index has successfully upheld its critical support level of 20 DEMA, around 24,850-24,800, and subsequently at 24,700, throughout the week. This zone is anticipated to provide robust support for the index in the near term, particularly in the context of any anticipated challenges. The levels of 25,000-24,900 are to be seen as a cushion zone for minor blips," Sameet Chavan of Angel One said. "On the flip side, the 78.60 percent Fibonacci retracement around 25300 is very much in proximity, and a breakthrough could trigger fresh longs in the coming period. As we approach the contract expiry week, it is anticipated that volatility will increase following the current consolidation phase," he added.

Trent, Bharat Electronics, Adani Enterprises, Hindalco, and Bajaj Finance were the top gainers on the Nifty. Laggards on the index included Infosys, HCL Tech, Hero MotoCorp, L&T, and M&M.