Markets opened with cautious optimism on Wednesday morning. Sensex and Nifty opened slightly lower but quickly rebounded into positive territory. The Sensex, which closed at 81,583.30 in the previous session, opened at 81,314.62 and is currently trading at 81,761.49, up 178.19 points or 0.22 per cent at 9.35 am.

Similarly, the Nifty opened at 24,788.35 against its previous close of 24,853.40 and has risen to 24,922.50, gaining 69.10 points or 0.28 per cent despite heightened geopolitical tensions in the Middle East and ahead of the US Federal Reserve’s policy announcement.

The auto sector emerged as the day’s standout performer, with IndusInd Bank leading the Nifty 50 gainers list with a surge of 4.04 per cent to ₹841.80. Maruti Suzuki followed closely with gains of 1.97 per cent to ₹12,843.00, while Mahindra & Mahindra climbed 1.89 per cent to ₹3,064.00. Eicher Motors and Bajaj Auto rounded out the top five gainers with increases of 1.57 per cent and 1.37 per cent respectively, reaching ₹5,425.00 and ₹8,610.50.

“Markets could see a downward bias in early trades amid weakness in the Gift Nifty index, with intra-day volatility likely to continue in the wake of the ongoing tensions in the Middle East and caution ahead of today’s US Fed announcement of its policy rates,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Despite the positive opening, select banking and metal stocks faced selling pressure. Kotak Mahindra Bank declined 1.06 per cent to ₹2,114.20, leading the losers list, while NTPC fell 0.48 per cent to ₹333.60. JSW Steel dropped 0.42 per cent to ₹995.50, HDFC Life Insurance shed 0.38 per cent to ₹771.00, and Adani Ports declined 0.36 per cent to ₹1,387.30.

The market’s resilience comes amid escalating Middle East tensions, with crude oil futures reflecting the geopolitical concerns. August Brent oil futures traded at $76.71, up 0.34 per cent, while WTI crude gained 0.38 per cent to $73.55. On the domestic front, June crude oil futures on MCX rose 0.84 per cent to ₹6,480.

“FII fund flows in the domestic equities have been choppy this month so far, as overseas investors continue to monitor the US bond yield movement with any spike in yields leading to exits from emerging market equities, including India,” Tapse added.

International investment firm Julius Baer maintained its optimistic outlook on Indian markets, stating: “Robust earnings, strong economic indicators, and a pro-growth monetary policy are fuelling India’s stock market rally. We maintain our Overweight stance.” The firm highlighted that aggregate earnings for the 500 companies listed on the National Stock Exchange rose 11 per cent year-on-year in the most recent quarter.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasized market resilience despite global uncertainties. “Despite the high valuations, particularly in the broader market, the market is likely to remain resilient supported by sustaining strong liquidity and hopes of turn around in earnings,” he said. “The 24500-25000 range will hold in the near-term and is likely to be broken on the upside when positive news relating to the West Asian conflict comes.”

Gold markets remained volatile as investors awaited clarity on US policy developments. “Gold prices remain volatile as markets await clearer signals on the potential actions US President Donald Trump may take amid escalating tensions between Iran and Israel,” said Aksha Kamboj, Vice President of India Bullion and Jewellers Association. “Meanwhile, investor focus is also turning to the US Federal Reserve’s policy decision scheduled for Wednesday night.”

Market participants are also monitoring SEBI’s upcoming board meeting, which could introduce significant regulatory changes. Tarun Singh, MD and Founder of Highbrow Securities, described the meeting as potentially marking “a pivotal shift in how Indian capital markets balance access, oversight, and accountability.”

“Tools like verified UPI IDs and the new ‘SCORES’ app signal a proactive approach to investor protection,” Singh noted, adding that proposed reforms including the co-investment framework for AIFs and streamlined FPI compliance could “deepen capital access while aligning India with global norms.”

Technical analysts suggest the Nifty faces resistance around the 61.8 per cent retracement level. Vikram Kasat, Head - Advisory at PL Capital, noted that “Yesterday’s high of 24982 is the immediate resistance level on the way up. On the way down, 24550 – 24450 will be a critical support zone.”

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Published on June 18, 2025