Market showed gains in Nifty Auto & Financial Services, while Media & IT faced loss
The Indian stock market opened higher despite ongoing geopolitical tensions in the Middle East. Experts suggest such risks usually have a short-term impact, though uncertainty about the US involvement is causing some bearish sentiment. Early trading showed gains in Nifty Auto and Financial Services, while sectors like Media and IT faced losses due to global exposure.
Mumbai (Maharashtra) [India], June 20 (ANI): The Indian stock market opened on a positive note Friday, showing resilience despite escalating geopolitical tensions in the Middle East. The benchmark indices started the day with notable gains, reflecting investor confidence amid global uncertainty.
Ajay Bagga, banking and market expert said, "Geopolitical risks normally have a short-term impact on the markets. However, the lack of clarity on the end game and on the US involvement is leading to bearish overtones for the markets. Iran is no pushover, and the Islamic regime puts its survival ahead of the welfare of its population or economy. The worst-case scenarios will not play out, but are getting factored in."
The BSE Sensex opened 237.77 points higher at 81,599.63, while the NSE Nifty gained 77.55 points, beginning the session at 24,870.80. This upward momentum came even as concerns over the ongoing Israel-Iran conflict weighed on global market sentiment.
Among the Nifty 50 companies, 32 stocks opened with gains, while 18 registered losses, indicating a broadly optimistic market mood in early trading. In the broader market, the Nifty 100 index saw a surge, signalling strength in large-cap stocks. Meanwhile, the Nifty Midcap 100 remained unchanged, suggesting a cautious stance among investors toward mid-sized companies.
Looking at sectoral performance, the gains were led by Nifty Auto, Nifty Financial Services, and Nifty PSU Banks. These sectors showed strong momentum, possibly driven by favourable domestic economic indicators and investor appetite for banking and consumption-related stocks.
On the other hand, sectors such as Nifty Media, Nifty Metal, Nifty Pharma, and Nifty IT faced losses, likely due to their greater exposure to international factors and export dependencies.
Commenting on the situation, Bagga said, "The Israel-Iran conflict enters its 8th day. European foreign ministers are meeting the Iranian foreign minister today, but their efforts may not yield any peace dividend. Markets are factoring in worst-case scenarios as Trump follows a policy of deliberate uncertainty creation around the decision to bring the US directly into the conflict."
Despite these global tensions, the early gains in the Indian stock market suggest that investors remain focused on domestic fundamentals and sector-specific opportunities, while staying alert to any further geopolitical developments. (ANI)