Market snaps 5-day winning streak over profit booking, ceasefire concerns

Investors also turned cautious over the reports emerging from the West Asia ceasefire.
Image used for representational purpose only.
Image used for representational purpose only.(File Photo | IANS)
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Indian equity markets snapped a five-day winning streak on April 9, witnessing profit booking after the sharp rally in the previous session. Investors also turned cautious over the reports emerging from the West Asia ceasefire. The Sensex declined 931 points (-1.20%) to settle the Thursday session at 76,631, while the Nifty fell 222 points (-0.93%) to close at 23,775. 

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services said that sentiment is likely to remain cautious until further details on the ceasefire emerge, with negotiations expected over the weekend. 

“Markets are expected to remain highly sensitive to news flow on the geopolitical front, while a gradual up-move may resume once greater clarity emerges from the outcome of the negotiations…Adding to the pressure, fresh geopolitical concerns resurfaced, after US President Donald Trump reiterated that American forces would remain deployed around Iran until a “real agreement” is implemented,” said Khemka. 

Weak global cues and persistent FII outflows (Rs 37,934 crore in April) weighed on sentiment and liquidity. The rupee depreciated to 92.8/USD, and a rise in India VIX indicated elevated volatility. 

Khemka added that signals of potential ceasefire breaches and continued Israeli strikes in Lebanon have heightened uncertainty, further dampening investor risk appetite. While near-term support may emerge from easing West-Asia tensions and stable crude prices, the sustainability of any recovery will depend on clarity around the US–Iran situation, movement in energy prices and improvement in liquidity conditions, he said. 

Broader markets remained relatively resilient on Thursday, with the Nifty Midcap index advancing 0.3%, while the Small cap index ended largely flat. Focus now shifts to the IT sector, with TCS set to announce its quarterly results today post market hours, which will set the tone for the upcoming earnings season, said analysts at Bajaj Auto. 

On the sectoral front, oil & gas, PSU banks, auto, infra, consumer durables, media, and private banks witnessed selling pressure, declining in the range of 0.3–2%. In contrast, metals, power, and pharma stocks outperformed, gaining 0.6–1%. 

Vinod Nair, Head of Research, Geojit Investments said that ceasefire-led optimism faded as renewed US–Iran tensions and ongoing restrictions at the Strait of Hormuz pushed crude back up, reviving concerns around India’s inflation. 

“Globally, the hawkish tilt in the latest FOMC minutes, signaling openness to rate hikes, combined with geopolitics-driven oil volatility, raised the hurdle for EM flows. If crude sustains above current levels, earnings downgrades for FY27 could re-emerge. That said, valuations remain supportive after the recent correction, and durable progress on the geopolitical front could quickly restore confidence in the medium-term earnings trajectory,” added Nair. 

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