Mumbai: Equity benchmarks Sensex and Nifty on Tuesday gave up most of their sharp intra-day gains due to the emergence of profit-taking as investors turned cautious amid reports of a ceasefire violation between Iran and Israel. In the morning trade, markets bounced back sharply, mirroring a rally in global peers and a steep decline in crude oil prices amid hopes of a potential de-escalation in the Middle East conflict.

After surging 1,121.37 points or 1.36 per cent to 83,018.16 in intra-day trade, the 30-share Sensex later trimmed most of its gains as reports surfaced of the ceasefire plan faltering. But, the benchmark still managed to settle in the green, climbing 158.32 points or 0.19 per cent to 82,055.11. As many as 2,662 stocks advanced and 1,339 declined while 143 remained unchanged on the BSE. On similar lines, the 50-share Nifty rose 72.45 points or 0.29 per cent to end at 25,044.35. The index fell from an intra-day high of 25,317.70.

“Initial gains in the domestic market, driven by the ceasefire announcement and sharp drop in crude prices, were short-lived as renewed geopolitical tensions in the Middle East unsettled investor sentiment. “Adding to the uncertainty was heightened volatility due to expiry day dynamics. Although the market attempted to break out of its recent consolidation range, persistent global risks continue to impede momentum,” Vinod Nair, Head of Research, Geojit Investments Limited, said. From the Sensex constituents, Adani Ports, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finserv and Titan were among the biggest gainers. In contrast, Power Grid, Trent, NTPC, Maruti, HCL Tech and Bharat Electronics were among the laggards.

“It turned out to be an eventful day for market participants, as the benchmark index witnessed sharp swings in both directions before finally closing with marginal gains. Initially, sentiment was buoyed by reports of a potential ceasefire between Iran and Israel, along with a sharp decline in crude oil prices. “However, concerns resurfaced in the latter half following reports of a possible ceasefire violation by Iran, which led to a pullback and erased most of the early gains. Eventually, the Nifty ended with marginal gains,” Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

The BSE smallcap gauge climbed 0.71 per cent and the midcap index rose 0.54 per cent. Among BSE sectoral indices, services jumped 2.13 per cent, telecommunication (1.13 per cent), commodities (1.12 per cent), metal (0.96 per cent), financial services (0.81 per cent), bankex (0.72 per cent) and auto (0.62 per cent).