Indian Markets Defy Geopolitical Tensions, Rally Amid Middle East Unrest

In a notable display of resilience, Indian stock markets closed in the green on Monday, shrugging off escalating geopolitical tensions between Iran and Israel. The BSE Sensex climbed 677.51 points, or 0.84%, to settle at 81,796.15, while the Nifty 50 gained 227.90 points, or 0.92%, ending the day at 24,946.50.

Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, observed that despite the fraught geopolitical landscape marked by Israeli military actions against Iran, Indian markets managed to remain buoyant. Concerns about potential disruptions in oil supplies and regional instability triggered unease among global investors, yet the Indian markets held firm.

Nifty sectoral indices reflected widespread positivity, with Nifty IT as the top performer with an increase of nearly 1.6%, followed by Nifty Realty and Nifty Oil & Gas. However, Tata Motors faced a downturn, dropping by 5%, after its subsidiary Jaguar Land Rover highlighted challenges in China's premium car market.

On the NSE, 1,483 stocks ended in the green out of 3,021 traded, with 1,448 closures in the red and 90 stocks unchanged. Vinod Nair, Head of Research at Geojit Investments Limited, pointed out that investors focused on long-term fundamentals, supporting market gains amid volatility. While geopolitical developments are expected to influence market sentiments, sectors like oil and gas thrived, and IT sector optimism grew ahead of the US Federal Reserve policy meeting.

The precious metals market saw mixed fortunes, with gold prices initially in the red at MCX but surging to a record high in the domestic futures market due to rising tensions in the Middle East.

(With inputs from agencies.)