Markets opened lower on Tuesday morning with the Sensex opening at 81,869.47 but is currently trading at 81,585.79, down 210.36 points or 0.26 per cent from its previous close of 81,796.15. The Nifty also declined by 73.80 points or 0.30 per cent, currently at 24,872.70 after opening at 24,891.80, compared to Monday’s close of 24,946.50 despite global markets showing resilience amid ongoing Middle East tensions.

Foreign Institutional Investors continued their selling spree for the fourth consecutive session, offloading equities worth ₹2,539 crore on June 16, while Domestic Institutional Investors provided support by purchasing equities worth ₹5,780 crore on the same day. Over the last four trading days since the Iran-Israel conflict escalated, FIIs have sold stocks worth ₹8,080 crore, which has been completely offset by DII buying of ₹19,800 crore.

“Sustained retail fund flows, mainly through SIPs, are empowering the DIIs to buy consistently,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The main contributor to the market resilience is the retail investors using every dip in the market as a buying opportunity. Valuations do not appear to deter retail investors.”

Among individual stocks, NTPC emerged as the top gainer on the Nifty 50, rising 0.79 per cent to ₹336.35. Adani Ports followed with a 0.64 per cent gain to ₹1,409.60, while Axis Bank advanced 0.58 per cent to ₹1,222.40. Kotak Mahindra Bank and Asian Paints rounded out the top five gainers, climbing 0.55 per cent and 0.54 per cent, respectively.

On the losing side, ONGC led the decline, falling 1.72 per cent to ₹252.37. Sun Pharma dropped 1.21 per cent to ₹1,664.90, while UltraTech Cement declined 1.12 per cent to ₹11,366.00. IndusInd Bank and Bajaj Finserv also featured among the top losers, falling 1.08 per cent and 1.07 per cent, respectively.

“The nifty continued its recovery in the previous session as global markets rebounded on news that Iran is looking to resume talks,” said Akshay Chinchalkar, Head of Research at Axis Securities. “For the upcoming session, resistance can be seen between 25,000 and 25,238 while support lies between 24,750 and 24,800.”

Market analysts expect volatility to persist as traders await the Federal Reserve’s policy meeting scheduled for Wednesday night. “Reports suggesting that Iran is seeking interest in ending hostilities and restarting nuclear talks could have a positive effect on equity assets worldwide,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “If the Federal Reserve maintains a dovish stance in its policy meeting on Wednesday, it would have a sentimental impact on Dalal Street.”

The commodity markets reflected the ongoing geopolitical tensions, with crude oil futures rising on Tuesday morning following US President Donald Trump’s call for the evacuation of Tehran. August Brent oil futures traded at $73.47, up 0.33 per cent, while August WTI crude futures climbed 0.46 per cent to $70.57. On the domestic front, June crude oil futures on MCX were trading at ₹6,184, up 0.21 per cent from the previous close.

“Crude oil prices resumed gains on Tuesday as escalating conflict between Israel and Iran reignited supply concerns,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. “While Iran has signaled its willingness to de-escalate and resume nuclear talks, uncertainty over further retaliation kept traders cautious.”

In the precious metals segment, gold and silver prices remained under pressure despite ongoing Middle East tensions. “Gold prices are experiencing some profit booking after recent gains, even as tensions in West Asia persist without signs of de-escalation,” explained Aksha Kamboj, Vice President of India Bullion and Jewellers Association. “It appears that the current geopolitical risk is already priced in, and only a significant escalation may drive bullion prices higher from here.”

Technical analysts suggest caution in the near term. “Given the prevailing environment of uncertainty and elevated volatility, traders are advised to adopt a cautious ‘buy on dips’ approach, particularly when dealing with leveraged positions,” advised Hardik Matalia, Derivative analyst at Choice Broking. “Fresh long positions should be considered only if the Nifty sustains above the 25,000 level.”

The market’s resilience despite continued FII selling has been attributed to strong domestic institutional support backed by consistent retail investor participation through systematic investment plans. “Nifty has support at 24,500 level and is likely to face resistance at 25,000 level,” Vijayakumar added. “Even while exercising some caution, it makes sense to remain invested in this market and to buy the dips.”

Published on June 17, 2025