Markets opened marginally higher on Friday morning as investors remained cautious amid escalating Middle East conflicts, with the Sensex gaining 177.46 points to 81,539.33 and Nifty rising 43.70 points to 24,836.95 in early trade.
The benchmark indices showed muted momentum as market participants adopted a wait-and-see approach following geopolitical developments in the region. Foreign Institutional Investors (FIIs) extended their buying spree for the third consecutive session, purchasing equities worth ₹934 crore on June 19, while Domestic Institutional Investors (DIIs) also remained net buyers with purchases of ₹605 crore.
“While markets may see a steady opening with a positive bias, investors are likely to be in wait-and-see mode amidst escalating Middle East conflicts,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. “Bulls have been working hard to float above the dotted lines for past 3-trading days but towards close ended on an uninspiring note.”
Market experts highlighted the impact of ongoing geopolitical tensions on trading sentiment. “Investors should not expect a quick end to this West Asia conflict, while volatility and wild swings are likely to become a new normal,” Tapse added, noting that Nifty has its biggest support at 24,473 mark with immediate resistance at the psychological 25,000 level.
Among individual stocks, Mahindra & Mahindra emerged as the top gainer on Nifty50, rising 1.04 per cent to ₹3,127, followed by HDFC Life which gained 0.80 per cent to ₹765.85. Bharti Airtel advanced 0.72 per cent to ₹1,890.60, while UltraTech Cement climbed 0.60 per cent to ₹11,488.
On the downside, Hero MotoCorp led the losers, declining 1.85 per cent to ₹4,303.30. Bajaj Finance fell 0.83 per cent to ₹893, IndusInd Bank dropped 0.67 per cent to ₹831.85, Wipro declined 0.56 per cent to ₹264.10, and Tech Mahindra shed 0.53 per cent to ₹1,675.
The broader market witnessed significant weakness, with smallcap stocks correcting sharply by 2 per cent in the previous session. “A distinct feature of the market trend visible in yesterday’s trade was the weakness in the broader market,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. “This trend of weakness in the broader market is likely to continue since they are excessively valued and the ongoing risk-off can lead to further selling in this segment.”
Market analysts expect continued range-bound trading in the near term. “Nifty which has been trading within the 24,500-25,000 range for about a month now is likely to remain within this range in the near-term,” Vijayakumar explained. “The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war.”
Technical indicators suggest key support levels for the day. “After a flat opening, Nifty can find support at 24,700 followed by 24,600 and 24,500,” said Hardik Matalia, Derivative Analyst, Choice Broking. “On the higher side, 24,850 can be an immediate resistance, followed by 24,900 and 25,000.”
The banking sector showed mixed signals with Bank Nifty expected to find support at 55,400 levels. “If the index advances further, 55,800 would be the initial key resistance, followed by 56,000 and 56,200,” Matalia noted.
Commodity markets reflected the global uncertainty, with gold and silver prices sliding from recent highs. “Gold prices remain sluggish, as concerns over potential high inflation signalled by the U.S. Federal Reserve have overshadowed the safe-haven demand typically expected during geopolitical tensions,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association.
Oil prices remained volatile due to Middle East developments. “Crude oil remains highly volatile, with prices reacting sharply to developments and statements related to the Israel-Iran conflict,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. “Markets remain jittery as risks of supply disruptions from Iran and broader conflict escalation loom large.”
The volatility index INDIAVIX declined 0.14 per cent to 14.2550, indicating relatively stable market conditions despite underlying concerns.
Investment strategists advised caution in current market conditions. “Money may move from the over-valued SMIDs to the fairly valued, safe largecaps in financials, industrials, autos and real estate,” Vijayakumar suggested, highlighting sector rotation possibilities.
Market participants are closely monitoring global developments and central bank policies as they navigate through uncertain geopolitical conditions. “Given the ongoing geopolitical tensions and fragile global cues, traders are advised to maintain a cautious stance, avoid large overnight exposures, and strictly adhere to stop-loss levels,” Matalia concluded.