Indian equity indices opened in the green on Monday despite rising tensions in the Middle East, with early trade showing no signs of panic among investors.
As of 9:21 a.m., the Sensex was up by 265.05 points or 0.33 per cent at 81,396.52, while the Nifty rose by 93.40 points or 0.38 per cent to reach 24,812.
Buying interest was observed in both the midcap and smallcap segments. The Nifty Midcap 100 index rose by 65.45 points or 0.11 per cent to 58,292.50, while the Nifty Smallcap 100 index gained 17.15 points or 0.09 per cent to reach 18,391.95.
According to analysts, the ongoing Israel-Iran conflict has introduced uncertainty and a risk-off sentiment in global markets.
“The safe-haven demand is keeping gold firm, but the dollar continues to remain weak. Interestingly, there is no panic in equity markets,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Markets, he noted, will face severe pressure only if Iran closes the Strait of Hormuz, triggering a sharp spike in crude prices. However, he added that this currently appears to be a low-probability scenario.
On the sectoral front, IT, financial services, pharma, FMCG, metal, energy, infrastructure, and public sector enterprises (PSEs) emerged as major gainers. On the other hand, auto, PSU banks, metal, and realty stocks witnessed some profit-booking.
Within the Sensex pack, top gainers included Power Grid, UltraTech Cement, L&T, HCL Tech, Asian Paints, Bharti Airtel, TCS, Infosys, NTPC, and Tech Mahindra. Among the major losers were Tata Motors, Axis Bank, Kotak Mahindra Bank, Sun Pharma, M&M, SBI, and Maruti Suzuki.
Given the current environment of heightened volatility and geopolitical uncertainty, market experts are advising traders to adopt a cautious approach, particularly with leveraged positions.
“Partial profit-booking during rallies and the use of tight trailing stop-losses is recommended,” said Aakash Shah of Choice Broking.
Asian markets were trading mixed. Tokyo, Shanghai, Seoul, and Jakarta were in the green, while Bangkok and Hong Kong were trading in the red. On Friday, US markets closed in negative territory.
From an institutional standpoint, foreign institutional investors (FIIs) were net sellers on June 13, offloading equities worth ₹1,263 crore. Meanwhile, domestic institutional investors (DIIs) remained net buyers, purchasing equities worth ₹3,041 crore.
Analysts believe the prevailing trend of steady retail participation and sustained fund inflows into mutual funds will keep valuations elevated over the long term. Consequently, they suggest that long-term investors consider using this risk-off phase to accumulate relatively undervalued stocks, particularly in the financial sector.
— IANS
