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Key Points

Indian stock markets opened positively despite rising geopolitical tensions in the Middle East. Analysts noted that while global markets remain cautious, Indian equities showed resilience. Key sectors like IT, pharma, and FMCG led the gains, while auto and PSU banks lagged. Experts advise caution but see opportunities in undervalued financial stocks.

Key Points: Indian Stock Market Rises Despite Middle East Tensions

  • Sensex and Nifty open higher despite Middle East tensions
  • Midcap and smallcap indices also show gains
  • Analysts warn of risk if Iran closes Strait of Hormuz
  • IT, pharma, and FMCG sectors lead gains
2 min read

Indian stock market opens in green, defies geopolitical tensions

Sensex and Nifty gain as Indian markets defy geopolitical risks, with midcaps and smallcaps also showing strength amid global uncertainty.

"The safe haven buying is keeping gold firm but dollar continues to be weak. Interestingly, there is no panic in equity markets. – VK Vijayakumar, Geojit Investments"

Mumbai, June 16

The Indian equity indices opened in the green on Monday despite rising Mideast tensions, and there was no panic seen during the early trade.

At 9:21 am, Sensex was up 265.05 points or 0.33 per cent at 81,396.52 and Nifty was up 93.40 points or 0.38 per cent at 24,812.

Buying was seen in the midcap and smallcap index. Nifty midcap 100 index was up 65.45 points or 0.11 per cent at 58,292.50 and Nifty smallcap 100 index was up 17.15 points or 0.09 per cent at 18,391.95.

According to analysts, the uncertainty stemming from the Israel-Iran conflict has created a risk-off in global markets.

“The safe haven buying is keeping gold firm but dollar continues to be weak. Interestingly, there is no panic in equity markets,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Markets will be severely impacted only if Iran closes the Strait of Hormuz triggering a huge spike in crude. This appears to be a low probability event now, he added.

On the sectoral front, IT, fin service, pharma, FMCG, metal, energy, infra and PSE were major gainers. Auto, PSU Bank, metal and realty were major losers.

In the Sensex pack, Power Grid, UltraTech Cement, L&T, HCL Tech, Asian Paints, Bharti Airtel, TCS, Infosys, NTPC and Tech Mahindra were major gainers. Tata Motors, Axis Bank, Kotak Mahindra Bank, Sun Pharma, M&M, SBI and Maruti Suzuki were major losers.

Given the current environment of heightened volatility and uncertainty, traders are advised to maintain a cautious approach — especially with leveraged positions.

“Partial profit-booking on rallies and the use of tight trailing stop-losses is recommended,” said Aakash Shah from Choice Broking.

Asian markets were trading in the mixed zone. Tokyo, Shanghai, Seoul and Jakarta were in the green. Bangkok and Hong Kong were in the red. US market closed in the red on Friday.

From an institutional perspective, foreign institutional investors (FIIs) were net sellers on June 13, offloading equities worth Rs 1,263 crore. Meanwhile, domestic institutional investors (DIIs) remained supportive, purchasing equities worth Rs 3,041 crore.

The market scenario characterised by sustained retail buying and fund flows into mutual funds will ensure valuations remaining high for an extended period of time. Therefore, long-term investors can use this risk-off scenario to buy relatively attractively valued stocks like financials, said analysts.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the stock market article:
R
Rajesh K.
This shows the resilience of Indian markets! While global investors panic, our domestic institutions and retail investors are holding strong. Just hope the government keeps inflation in check so this rally continues. 🇮🇳📈
P
Priya M.
As a small investor, I'm happy but also nervous. The markets seem disconnected from ground realities - petrol prices are high, job market is tough. How long can this continue? Still, SIPs in index funds seem safest bet now.
A
Arjun S.
Good to see IT stocks performing well despite global headwinds. Our tech companies have shown they can adapt to changing environments. But warning for new investors - don't get carried away by these green numbers, markets can turn quickly!
S
Sunita R.
The FIIs selling while DIIs buying shows interesting dynamics. Are foreign investors underestimating India's growth story again? 🤔 Personally shifted some funds from US ETFs to Indian mutual funds last month - looking like a good decision!
V
Vikram J.
Markets are up but my portfolio is down because of overexposure to PSU banks. Lesson learned about diversification! The analysts' advice about trailing stop-losses is golden - wish I'd followed it earlier. New investors - please note this!
N
Neha T.
While the numbers look good, we shouldn't ignore the warning signs. If crude prices spike due to Middle East tensions, everything can change overnight. Maybe time to increase gold allocation in portfolio as hedge?

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