Sensex, Nifty trade on lacklustre note as IT sell-off weighs on market

Market Overview - The Nifty index traded flat at approximately 25,451.80, while the Sensex decreased by 97.39 points, or 0.12%, hovering near the 82,400 mark [1][14] - The Nifty breadth was positive with 27 stocks in the green and 23 in the red [1][15] Sector Performance - The IT sector was the top laggard, with the Nifty IT index declining by 1.5% in early trade [15] - Top gainers included ONGC, Bharat Electronics, Larsen & Toubro, Titan, and Coal India, while losers included Kwality Wall's, Infosys, HCL Technologies, and Wipro [15] Economic Commentary - The market correction was attributed to the US-Iran standoff, which has led to a spike in crude oil prices, raising concerns about supply disruptions [5][15] - Brent crude prices rose to $72, reflecting market fears and uncertainties [6][15] - The Indian economy shows strength and a recovery in corporate earnings is viewed positively, with expectations of a market bounce back in the coming days [7][15] Investment Strategy - Investors are advised to wait and observe developments in West Asia, but optimistic investors may consider buying fairly valued high-quality stocks in sectors such as banking, financials, autos, pharmaceuticals, hotels, capital goods, and telecom [8][15] - Historical crises have been seen as buying opportunities in hindsight [8] Global Market Influence - US markets closed lower, with the Dow 30 down by 267.50 points or 0.54%, and the S&P 500 down by 19.42 points or 0.28% [9][15] - Asian markets also experienced declines, with Japan's Nikkei 225 down by 1.25%, China's Shanghai Composite down by 1%, and Hong Kong's Hang Seng index down by 0.6% [10][15] Currency and Investment Flows - The Indian rupee opened 0.3% weaker against the US dollar at 90.94 [11][15] - Foreign Institutional Investors (FIIs) withdrew ₹880 crore from Indian equities, while Domestic Institutional Investors (DIIs) offloaded shares worth ₹596 crore [12][15] Crude Oil Prices - Crude oil prices continued to rise amid tensions between the US and Iran, with WTI trading at $66.780 per barrel and Brent at approximately $71.94 [13][15]