Markets Turn Green Despite Global Unrest; Auto & IT Lead Recovery

Stock Market: Indian stock indices opened on a cautious yet positive note on Wednesday, June 18, trading in the green as investors weighed the impact of rising geopolitical tensions in West Asia.

However, by early trade, the markets reversed their initial losses. At around 9:32 AM, the BSE Sensex was up 160.49 points or 0.20% at 81,743.79, while the NSE Nifty rose 57.40 points or 0.23% to reach 24,910.80.

Strong buying in auto, IT, and public sector bank stocks drove the market’s upward move.

The Nifty Bank index rose by 33 points (0.06%) to 55,747.15.

Meanwhile, the Nifty Midcap 100 traded slightly lower at 58,358.95, down by 20.35 points or 0.03%, and the Nifty Smallcap 100 index stood at 18,412.80 after shedding 7.55 points or 0.04%.

Geopolitical concerns & market sentiment

Concerns over geopolitical stability intensified following a firm stance from the United States in the Middle East conflict.

Analysts cited a statement by US President Donald Trump demanding ‘unconditional surrender’ from Iran and subsequent US defence posturing in the region as causes for market caution.

Despite global tensions, Dr VK Vijayakumar of Geojit Financial Services said investors remain calm, expecting the conflict to be short-lived with minimal economic impact.

In the Sensex basket, Power Grid, Kotak Mahindra Bank, Infosys, HDFC Bank, Axis Bank, NTPC and Mahindra & Mahindra were among the top laggards.

On the other hand, IndusInd Bank, HCL Technologies, Sun Pharma, Eicher Motors, and Tata Consultancy Services emerged as notable gainers.

Vikram Kasat, Head of Advisory at PL Capital, commented on technical resistance, “Nifty faced resistance around the 61.8% retracement level of the recent fall and corrected from that point. The immediate resistance is seen near 24,982, while the support zone lies between 24,550–24,450.”

Foreign Institutional Investors (FIIs) were net buyers in the domestic market, purchasing equities worth ₹1,616.19 crore on June 17.

Domestic Institutional Investors (DIIs) were also optimistic, acquiring equities worth ₹7,796.57 crore.

In the broader Asian market, indices in Bangkok, Japan, and Seoul traded in the green, while those in Jakarta, Hong Kong, and China posted losses.

Overnight, the US markets ended lower, with the Dow Jones falling 299.29 points (0.70%) to 42,215.80. The S&P 500 declined by 0.84% and the Nasdaq by 0.91%, reflecting investor caution.

With global uncertainties still unfolding, analysts recommend a cautious but opportunistic approach.

Domestic support from institutional investors and select sectoral strength could help offset external pressures in the near term.

Also Read: Markets End Lower Amid Rising Geopolitical Risks & Crude Price Surge