Daijiworld Media Network- Mumbai
Mumbai, Jun 20: The Indian equity markets began Friday’s trading session on a positive note, with benchmark indices Nifty50 and BSE Sensex opening in the green, buoyed by strong domestic investor sentiment despite volatile global cues.
At 9:22 AM, the Nifty50 was seen trading at 24,831.05, up by 38 points (0.15%), while the Sensex stood at 81,568.71, marking a rise of 207 points (0.25%).
Market experts attribute this cautious optimism to ongoing consolidation, influenced by global developments, particularly the Israel-Iran conflict and movement in crude oil prices. Analysts suggest that unless there’s a resolution or de-escalation in geopolitical tensions, indices may continue to trade within a limited range.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “Nifty has been consolidating between 24,500 and 25,000. A breakout above this will depend on global cues such as easing of geopolitical risks. On the downside, strong domestic institutional buying on dips is likely to cushion any fall.”
He also flagged concerns about the broader market, particularly small and midcaps (SMIDs), which have shown weakness due to overvaluation. On Thursday, the smallcap index corrected sharply by 2%, a sign of shifting investor preference towards largecap stocks, especially in sectors like financials, industrials, autos, and real estate.
Meanwhile, global markets offered mixed signals. S&P 500 futures declined by 0.3% during early Asian hours, following a sharper fall earlier in the week during the Juneteenth holiday in US markets. Japanese and Australian bourses traded in tight ranges.
Despite a marginal dip on Friday, crude oil is poised for its third straight weekly gain, fuelled by persistent tensions in the Middle East. With no signs of a truce between Israel and Iran, oil remains volatile, and any spike beyond $85 per barrel could weigh on the Indian market's lower band support.
Gold prices remained largely unchanged, as investors adopted a wait-and-watch approach amid geopolitical uncertainty and speculation over potential US intervention in the conflict.
On the investment front, foreign portfolio investors (FPIs) offloaded equities worth Rs 934 crore on Thursday, while domestic institutional investors (DIIs) continued to support the market with net purchases amounting to Rs 606 crore.
In the derivatives segment, FII positions in futures contracts eased slightly, with net short positions reducing from Rs 99,483 crore on Tuesday to Rs 99,183 crore on Wednesday.
With the monsoon session approaching and global headwinds persisting, market watchers remain focused on both macroeconomic indicators and geopolitical developments to gauge the next big move.