Daijiworld Media Network- Mumbai
Mumbai, Jun 17: The Indian equity markets opened on a volatile note Tuesday morning, with the Nifty50 hovering above 24,900 and the BSE Sensex trading close to 81,750, mirroring mixed global cues and geopolitical tensions in the Middle East.
At 9:18 AM, the Nifty50 stood at 24,933.10, down by 13 points or 0.054%, while the Sensex dipped 53 points to settle at 81,743.28, reflecting cautious sentiment.
The ongoing Israel-Iran conflict continues to cast a shadow over global equities, especially impacting defence and oil-linked stocks. In contrast, monsoon-related sectors such as fertilisers, agro-chemicals, and rural FMCG are likely to see interest due to predictions of above-average rainfall this season.
Despite the geopolitical jitters, experts believe the Indian market is showing remarkable resilience. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The global markets remain steady despite tensions, with Indian retail investors absorbing dips. FIIs sold over Rs 8,080 crore in the past four sessions, but DIIs countered it with strong buying worth Rs 19,800 crore.”
He added that retail SIP inflows continue to strengthen DII buying power, maintaining market stability.
According to market analysts, Nifty may find support around 24,500, with a possible resistance at 25,000. Investors are advised to remain cautious but stay invested, using dips as opportunities to accumulate quality stocks.
Wall Street closed on a positive note on Monday as oil prices eased, reducing inflationary concerns. The S&P 500 rose nearly 1%, crossing the 6,000-mark, providing cues for Asian markets.
However, Asian equities traded lower Tuesday morning, with modest gains seen only in Japan and South Korea, as investors monitored developments in the Middle East and awaited central bank announcements.
Meanwhile, crude oil prices rose over 2% following escalating tensions, especially after US President Donald Trump called for evacuation measures in Tehran, raising fears of supply disruptions.
In the currency markets, the US dollar edged up, while most global currencies stayed within tight ranges amid investor caution.
On the institutional front, FPIs were net sellers worth Rs 2,539 crore on Monday, while DIIs purchased Rs 5,781 crore worth of equities. FII net short positions in futures declined slightly, indicating reduced bearish bets.
As market volatility persists, sectoral movements, global cues, and retail sentiment are expected to dictate short-term trends.