Sensex Drops 322 Points, Nifty Falls Below 26,300 Amid Geopolitical Concerns
MUMBAI (Jan 5): Indian equity markets ended Monday on a cautious note, with the Sensex closing 322 points lower at 85,117 and the Nifty 50 slipping below 26,300 to 26,248, as investors balanced positive corporate earnings updates against rising geopolitical tensions following U.S. military action in Venezuela.
Early trading saw modest gains supported by optimism over robust quarterly results, but sentiment turned cautious as global markets reacted to potential disruptions in oil supply and geopolitical uncertainty. HDFC Bank and Infosys led the declines, dropping around 2% each, while other heavyweight stocks also witnessed profit-taking.
Market analysts noted that while earnings season has bolstered confidence in select sectors, the U.S.-Venezuela conflict has reintroduced volatility into crude-linked stocks and broader indices. Investors largely remained on the sidelines, waiting for clarity on the global political front.
Broader indices reflected mixed trends: small-caps gained 0.5% while mid-caps declined 0.2%, highlighting selective buying amid overall caution. Traders are advised to monitor geopolitical developments and crude price movements, which are likely to influence market direction in the near term.
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