Are Indian Stocks Rising as Geopolitical Tensions Subside?
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Synopsis
On June 24, the Indian stock market opened higher, riding the wave of easing geopolitical tensions after a ceasefire was declared between Iran and Israel. With the auto, IT, and financial sectors showing strong buying activity, experts suggest that the market may be stabilizing, though caution is advised amid ongoing volatility.
Key Takeaways
- Indian stock indices opened higher on June 24, driven by easing geopolitical tensions.
- Positive global cues contributed to early trading gains.
- Strong buying was observed in the auto, IT, and financial service sectors.
- Analysts advise caution amid ongoing market volatility.
- Foreign institutional investors were net sellers, while domestic investors remained active buyers.
Mumbai, June 24 (NationPress) The Indian benchmark indices commenced the trading session positively on Tuesday, riding the wave of favorable global indicators, as geopolitical tensions diminished following the ceasefire between Iran and Israel announced by US President Donald Trump.
Early trading saw significant buying activity in the auto, IT, PSU bank, and financial service sectors.
By approximately 9:31 am, the Sensex had surged by 756.5 points, or 0.92 percent, reaching 82,653.33, while the Nifty gained 229 points, also 0.92 percent, to hit 25,200.90.
Analysts believe that the significant events unfolding in West Asia, culminating in President Trump's ceasefire announcement, suggest that the most intense phase of the conflict may be behind us.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked, "The substantial fluctuations in the crude oil and stock markets indicate a return to normalcy in the geopolitical landscape."
The Nifty Bank index rose by 557.25 points, or 0.99 percent, to 56,616.60. The Nifty Midcap 100 index was reported at 58,617.80, increasing by 411 points or 0.71 percent, while the Nifty Smallcap 100 index climbed to 18,443.95, up by 123.05 points or 0.67 percent.
Aakash Shah, Technical Research Analyst at Choice Broking, noted, "The recent rebound in both Nifty and Bank Nifty signifies robust buying interest at lower levels, yet a decisive breakthrough above critical resistance levels—25,200 for Nifty and 56,300 for Bank Nifty—is essential for continued upward momentum."
In this climate of increased volatility and uncertainty, investors should maintain a cautiously optimistic stance, he added.
In the Sensex cohort, stocks such as Adani Ports, M&M, UltraTech Cement, L&T, Titan, SBI, Asian Paints, Bajaj Finance, and Bajaj Finserv emerged as the leading gainers, while NTPC, BEL, and Trent were the primary losers.
From an institutional viewpoint, foreign institutional investors (FIIs) were net sellers on June 23, offloading equities valued at Rs 1,874.38 crores, while domestic institutional investors (DIIs) were active buyers, acquiring equities worth Rs 5,591.77 crores.
Asian markets also reflected positive trends, with Bangkok, Japan, China, Seoul, Hong Kong, and Jakarta trading in the green.
In the previous trading session, the Dow Jones in the US concluded at 42,581.78, an increase of 374.96 points or 0.89 percent. The S&P 500 gained 57.33 points or 0.96 percent, closing at 6,025.17, and the Nasdaq ended at 19,630.97, up by 183.56 points or 0.94 percent.
Point of View
Our stance remains aligned with the nation’s best interests. The recent rise in Indian stock indices reflects a positive shift influenced by global events. However, we must advocate for prudent investment strategies amidst ongoing volatility. The situation in West Asia should be monitored closely, as it can impact our markets significantly. Investors are encouraged to stay informed and adjust their strategies accordingly to navigate these changing tides effectively.
NationPress
24/06/2025
Frequently Asked Questions
What drove the Indian stock market's rise on June 24?
The rise was primarily driven by easing geopolitical tensions following a ceasefire announcement between Iran and Israel, alongside positive global market cues.
Which sectors showed strong buying interest?
Strong buying interest was observed in the auto, IT, PSU bank, and financial service sectors during early trading.
What do analysts predict about the market's future?
Analysts suggest that while current buying interest is strong, a decisive breakout above key resistance levels is needed for sustained upward momentum.
How did foreign and domestic institutional investors behave recently?
Foreign institutional investors were net sellers, offloading equities worth Rs 1,874.38 crores, while domestic institutional investors were net buyers, purchasing equities valued at Rs 5,591.77 crores.
Which stocks were the top gainers and losers in the Sensex?
The top gainers included Adani Ports, M&M, and UltraTech Cement, while NTPC, BEL, and Trent were the main losers.
