Indian Markets Open Higher Amid Geopolitical Tensions; Broader Market Weakness Persists
Benchmark indices opened higher on Friday, buoyed by investor buying despite rising geopolitical tensions between Israel and Iran, which have introduced a note of caution on Dalal Street.
As of 9:23 am, the S&P BSE Sensex rose 160.43 points to 81,522.30, while the NSE Nifty50 gained 36.45 points to 24,829.70. However, sentiment remains guarded amid global uncertainties.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that Nifty is likely to stay within the 24,500–25,000 range in the near term. “The upper end will only be breached if there’s clear de-escalation between Israel and Iran. However, dips will likely attract buying, particularly from domestic institutions,” he said. He warned that if crude oil crosses $85 and the conflict persists, the lower end of the range may be tested.
Top gainers in early trade included:
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Mahindra & Mahindra (+1.01%)
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Bharti Airtel (+0.71%)
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Eternal (+0.70%)
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UltraTech Cement (+0.61%)
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HDFC Bank (+0.57%)
Major laggards were:
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IndusInd Bank (-0.90%)
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Bajaj Finance (-0.49%)
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Tech Mahindra (-0.37%)
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Kotak Mahindra Bank (-0.21%)
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Tata Motors (-0.10%)
The broader market showed mixed cues:
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Nifty Midcap 50 (+0.04%)
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Nifty Midcap 100 (+0.05%)
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Nifty Smallcap (-0.10%)
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India VIX fell sharply by 4.15%, indicating reduced near-term volatility expectations.
Sectoral performance was largely positive:
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Nifty PSU Bank (+0.63%)
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Nifty Realty (+0.41%)
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Nifty Financial Services (+0.33%)
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Nifty Healthcare, Pharma, Auto, and Private Bank indices posted marginal gains.
However, weakness was visible in:
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Nifty Media (-0.66%)
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Consumer Durables (-0.38%)
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Oil & Gas (-0.14%)
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IT (-0.12%)
Dr. Vijayakumar highlighted a growing divergence in performance. “While the headline Nifty held flat yesterday, SMIDs (small and midcaps) corrected sharply by 2%, a sign of valuation stress. This trend may persist, with funds rotating from overvalued SMIDs to fairly valued large-caps, especially in financials, autos, industrials, and real estate.”
