Mid-day Mood | Markets trade flat amid Middle East conflict; Nifty above 19,750

Stock Market Today

The benchmark BSE Sensex and NSE Nifty 50 traded flat around noon on October 16 as the war in the Middle East soured investor sentiment for riskier bets.

Surging oil prices, second-quarter results, macroeconomic data, gold prices, and other global cues amid the geopolitical conflict are being watched out for further direction.

At 11:43am, the Sensex was down 9.81 points or 0.01 percent to 66,272.93, and the Nifty was up 8.80 points or 0.04 percent at 19,759.80. About 1,944 shares advanced, 1,237 declined, and 157 stayed unchanged.

"Concerns regarding the spread of the Israel-Hamas conflict have triggered a sharp spike in Brent crude to above $90 and safe-haven buying has pushed gold to above $1,900. The anxiety of the market is reflected in the CBOE VIX spiking above 19. From the geopolitical perspective, we are in an uncharted territory and, therefore, prudence demands that investors remain cautious,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

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Holding cash would be a good strategy in this uncertain time, he added.

The cash component in the portfolio may be increased as a measure of caution. Also, this will enable investors to buy when there is a big dip in the market, and it is important to note that big dips can happen since valuations are high. "Paints, tyres and aviation stocks will be under pressure from the rising crude. HDFC Bank results today will be keenly watched by the market."

Stocks and sectors

Shares of Ashok Leyland gained more than a percent in the morning trade on October 16 after the company got a 1,666-bus order from the Tamil Nadu state transport undertakings. Dalmia Bharat witnessed a positive trend after the cement manufacturing company reported an impressive 121.4 percent surge in consolidated profit on October 13. Gati’s stock price skyrocketed 14 percent after volumes rose 18 percent year-on-year in the Q2FY24, as per the company’s business update.

Among the laggards, Delta Corp shares plunged 8.6 percent after a subsidiary received a notice for payment of Rs 6,384 crore for shortfall in taxes. Godrej Properties traded down marginally earlier on October 16 after the company's arm received GST demand and penalty notices.

The broader markets traded in the green, despite the fear gauge India VIX jumping 2.8 percent. Sectorally, as Nifty Bank traded flat, the PSU bank index jumped almost 1 percent in trade. The metal, consumer durables and auto indices traded with gains. Realty and pharma scrips lagged the markets, while Nifty IT traded flat.

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