MUMBAI: Benchmark indices Sensex and Nifty turned volatile after rising in early trade on Monday as conflicting developments in the West Asia and rising crude oil prices made investors jittery.
The 30-share BSE Sensex climbed 236.64 points to 78,730.18 in early trade. The 50-share NSE Nifty went up by 66.65 points to 24,420.20.
However, later the BSE benchmark traded 27.41 points lower at 78,504.91, and the Nifty quoted 11.80 points down at 24,342.40.
From the 30-Sensex firms, Trent, State Bank of India, ICICI Bank, Asian Paints, Adani Ports and Axis Bank were the major winners.
ICICI Bank traded nearly 2 per cent higher after the firm on Saturday reported a 9.28 per cent rise in its consolidated net profit to Rs 14,755 crore for the March quarter, helped by a nearly 90 per cent drop in provisioning.
HDFC Bank, Eternal, InterGlobe Aviation and Infosys were among the laggards.
"Over the weekend, conflicting developments emerged, particularly with reports indicating that the Strait of Hormuz has been closed again after briefly reopening on Friday. This reversal has already triggered a rebound in crude oil prices, reintroducing concerns around supply disruptions and inflation," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Brent crude, the global oil benchmark, traded 5.57 per cent higher at USD 95.41 per barrel.
"With the deescalation- escalation drama in the West Asian conflict continuing, the market will remain volatile in the near-term. With Iran hardening its position again, closing the Strait of Hormuz and threatening to retaliate to US’ seizure of an Iranian ship ‘violating the US blockade’, there is potential for flare up of the conflict when the ceasefire ends on 22nd April," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
However, the market signals do not reflect renewed concern and flare up of the conflict, he said.
"Even though Brent crude has spiked back to USD 95 levels from below USD 90 on Friday, there is no panic in the crude market," Vijayakumar added.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
US markets ended significantly higher on Friday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 683.20 crore on Friday, according to exchange data.
On Friday, the Sensex jumped 504.86 points or 0.65 per cent to settle at 78,493.54. The Nifty climbed 156.80 points or 0.65 per cent to end at 24,353.55.