The BSE Sensex was trading 239 points, or 0.30%, higher at 81,358. The Nifty50 was up 81 points, or 0.32%, trading at 24,796 around 9:19 am.
Over the weekend, Israel and Iran launched fresh attacks, resulting in civilian casualties and intensifying fears of a broader regional conflict.
Other Asian markets opened on a subdued note, with the MSCI Asia ex-Japan index down 0.2%, while oil prices climbed on growing concerns over supply disruptions from the oil-rich Middle East.
A sustained rise in crude prices is negative for major importers like India, as oil constitutes a significant portion of the country’s total import bill.
From the Sensex pack, Power Grid, UltraTech Cement, L&T, Bharti Airtel, Bajaj Finserv, HDFC Bank and Asian Paints opened with gains, while Tata Motors, Sun Pharma, Kotak Bank, Axis Bank, and M&M edged lower in early trade.On the sectoral front, Nifty Financial Services, IT, Media, Metal, Consumer Durables, and Oil & Gas indices rose up to 0.9%.Among individual stocks, SpiceJet shares surged 5% after the budget airline reported a sharp 173% YoY jump in its standalone profit after tax (PAT) for the March quarter, reaching Rs 324.87 crore.
Also read: Bajaj Finance shares rise over 2% as stock trades ex-split and ex-bonus
Experts View
“The uncertainty stemming from the Israel-Iran conflict has created a risk-off in global markets. The safe haven buying is keeping gold firm but dollar continues to be weak. Interestingly, there is no panic in equity markets. Markets will be severely impacted only if Iran closes the Strait of Hormuz, triggering a huge spike in crude. This appears to be a low probability event now,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
“Past experience tells us that times of uncertainty and risk-off are buying opportunities for long-term investors. The difference this time is that the risk-off has not triggered big selling in equities making their valuations attractive. The market scenario characterised by sustained retail buying and fund flows into mutual funds will ensure valuations remaining high for an extended period of time. Therefore, long-term investors can use this risk-off scenario to buy relatively attractively valued stocks like financials,” Vijayakumar added.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “Nifty is currently undergoing short-term consolidation. Traders holding long positions should maintain a stop-loss at 24462. A breach below this level could lead to a further decline towards the 24164 support, and a sustainable close below 24164 would positionally reverse the bullish trend. Conversely, a close above 25000 would negate the possibility of a downtrend.”
Global Markets
Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world’s economic troubles in a week packed with central bank meetings.
Japan’s Nikkei firmed 0.8% and South Korean stocks added 0.5%. Chinese blue chips added 0.1% as data showed retail sales rose 6.4% in May to handily top forecasts, while industrial output was in line with expectations.
S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%, recovering from an early dip.
European markets were more pressured by the region’s reliance on oil imports, and EUROSTOXX 50 futures slipped 0.2%, while DAX futures lost 0.3%. FTSE futures were little changed.
FII/DII Tracker
From an institutional perspective, Foreign Institutional Investors (FIIs) were net sellers on June 13, offloading equities worth Rs 1,263 crore. Meanwhile, Domestic Institutional Investors (DIIs) remained supportive, purchasing equities worth Rs 3,041 crore.
Crude Oil
Oil prices climbed on Monday, extending Friday’s rally, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.
Brent crude futures rose $1.12, or 1.5%, to $75.35 a barrel by 0019 GMT, while U.S. West Texas Intermediate crude futures gained $1.10, or 1.5%, to $74.08. They had surged more than $4 earlier in the session.
Also read: Where is Nifty heading this week amid rising tensions and market uncertainty?
Rupee vs Dollar
The Indian rupee rose 11 paise to 86.22 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, surged 0.33% to 98.33 level.
(With inputs from agencies)
