Indian Stock Market Trades in Green Despite Rising Geopolitical Tensions
The Indian stock market opened on a cautious note on Wednesday amid escalating geopolitical tensions in the Middle East but soon recovered to trade in the green. Investors showed strong buying interest in auto, IT, and PSU bank stocks, helping the benchmarks recover from early losses.
Mumbai: The Indian stock market opened on a cautious note on Wednesday amid escalating geopolitical tensions in the Middle East but soon recovered to trade in the green. Investors showed strong buying interest in auto, IT, and PSU bank stocks, helping the benchmarks recover from early losses.
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At 9:32 am, the BSE Sensex was up 160.49 points or 0.20%, trading at 81,743.79, while the NSE Nifty climbed 57.40 points or 0.23% to 24,910.80.
Sector Performance: Auto, IT, and PSU Banks Lead Gains
The Nifty Bank index edged higher by 33 points or 0.06% to 55,747.15, while the Nifty Midcap 100 was slightly lower at 58,358.95, down 0.03%. The Nifty Smallcap 100 also dipped marginally by 0.04% to 18,412.80.
Top gainers on the Sensex included IndusInd Bank, HCL Tech, Sun Pharma, Eternal, and TCS, while Power Grid, Kotak Mahindra Bank, Infosys, HDFC Bank, and Axis Bank were among the major laggards.
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Rising Middle East Tensions Keep Investors Cautious
Market sentiment was clouded by renewed geopolitical concerns after US President Donald Trump called for an “Unconditional Surrender” from Iran. Analysts noted increased US military activity in West Asia, suggesting further escalation of the conflict.
Despite this, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, remarked, “There is no panic in global equity markets. It appears the broader market believes the conflict will not have long-term economic consequences.”
Key Technical Levels for Nifty to Watch
According to Vikram Kasat, Head of Advisory at PL Capital, the Nifty index faced resistance at the 61.8% retracement level of the recent decline. The immediate resistance is at 24,982, while the crucial support zone lies between 24,550 and 24,450.
FIIs and DIIs Show Strong Buying Interest
Foreign Institutional Investors (FIIs) were net buyers on June 17, purchasing equities worth ₹1,616.19 crore, while Domestic Institutional Investors (DIIs) bought stocks worth ₹7,796.57 crore, indicating sustained institutional support.
Global Market Update: Mixed Trend in Asia
In Asia, stock markets in Bangkok, Japan, and Seoul traded in the green, whereas Jakarta, Hong Kong, and China saw losses. In the US, the Dow Jones fell by 299.29 points, the S&P 500 lost 50.39 points, and the Nasdaq dropped 180.12 points in the last session, reflecting global caution.
