Indian stock markets displayed resilience on Monday amid escalating tensions between Israel and Iran, as investors maintained their focus on long-term fundamentals despite the volatile geopolitical backdrop.
Both the Sensex and Nifty ended the day with sharp gains of nearly 1 per cent, reflecting investor optimism in the face of uncertainty.
The Sensex surged 677.55 points, or 0.84 per cent, to close at 81,796.15, after hitting an intra-day high of 81,865.82.
Similarly, the Nifty advanced 227.9 points, or 0.92 per cent, to settle at 24,946.50.
“The index witnessed a sharp rally as it reclaimed the 21-EMA after a brief dip below it,” said Rupak De, Senior Technical Analyst at LKP Securities. “Currently, with investors awaiting the Fed’s follow-up commentary post the rate announcement, a steep directional move is not expected for now.”
However, De added, “A rally towards 25,350 looks highly probable once Nifty reclaims the 25,000 mark. On the downside, support is placed at 24,850.”
Broader markets also posted gains. The Nifty Midcap100 rose by 0.93 per cent, while the Nifty Smallcap100 climbed 0.95 per cent.
All sectoral indices ended in the green, indicating broad-based buying. The Nifty IT index was the top performer, gaining 1.57 per cent, followed by Realty (1.32 per cent), Oil & Gas (1.11 per cent), and Metal (1.07 per cent).
Other sectors including banking, energy, FMCG, pharma, and media also closed higher.
Among the top gainers on the Sensex were Ultratech Cement, Tech Mahindra, HCL Tech, TCS, Kotak Mahindra Bank, and Infosys — with some stocks rising up to 2.4 per cent.
On the downside, Tata Motors emerged as the biggest laggard, falling 3.76 per cent. Sun Pharma also closed in the red.
Meanwhile, the India VIX — often referred to as the market’s “fear index” — declined by 1.6 per cent to 14.83, suggesting a relatively calm market outlook in the short term.
Vinod Nair, Head of Research at Geojit Financial Services, noted that despite geopolitical tensions in the Middle East, the markets moved higher, supported largely by gains in large-cap stocks.
“Geopolitical developments in the region are likely to influence near-term market sentiment, with any signs of de-escalation being closely monitored. Small-cap stocks may underperform in the short term due to their elevated valuations and lack of immediate triggers,” he said.
-IANS
