Despite escalating tensions between Iran and Israel, Indian stock markets opened strong on Monday, reflecting investor confidence and domestic stability.
As of 11:17 am:
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BSE Sensex rose 582 points to 81,700.92
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NSE Nifty50 gained 184 points to 24,902.05
This performance came even as gold prices rose and crude oil remained a concern globally. Experts say Indian markets are being shielded by a mix of stable oil prices, strong local liquidity, and a belief that the Israel-Iran conflict won't escalate further.
Dr VK Vijayakumar of Geojit Financial Services noted that global investors are cautious, but not panicked, because a major escalation like Iran closing the Strait of Hormuz seems unlikely for now.
Analysts like Kranthi Bathini of WealthMills Securities suggest markets have become used to such geopolitical shocks and are instead focusing on selective buying opportunities, especially in sectors like financials, where valuations are still reasonable.
Key reasons for market resilience:
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Strong domestic mutual fund inflows
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Retail investor participation
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Stabilising crude oil prices
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Hopes of de-escalation from the U.S.
However, experts warn that if oil prices surge or the conflict intensifies, volatility could return quickly. For now, technical analysts are watching if Nifty holds above 24,700, a crucial level for near-term direction.
