Indian equity markets displayed a surprising level of grit on Wednesday morning, opening in positive territory despite a backdrop of deepening geopolitical turmoil and persistent selling by foreign investors. The Nifty 50 climbed 51.75 points to start at 23,632.90, while the BSE Sensex rose by nearly 300 points, or 0.39 per cent, to reach 76,367.55 in early trade.
This bounce-back comes even as the shadow of the conflict involving the US, Israel, and Iran looms large over global trade. Analysts pointed out that the domestic market is currently fighting off extreme "oversold" conditions. The mainstay against this deluge of Foreign Portfolio Investor (FPI) outflows has been Domestic Institutional Investors (DIIs), whose outflows this month alone have exceeded ₹70,000 crore.
Writes Ajay Bagga, a banking and markets expert: "While the bounce back is good, how long it lasts is still dependent on the known unknowns, and that’s how much disruption has occurred in oil and gas." With crude prices hovering around $103 per barrel, the global economic strain is palpable. Furthermore, all eyes are on the US Federal Reserve meeting this week; the consensus is that rates will remain on hold, with only a single cut potentially priced in for very late 2026.
Across the board, sectoral indices on the NSE showed broad-based strength. Technology stocks led the charge with the Nifty IT index surging over 2.3 per cent, followed by healthy gains in the Auto and PSU Bank sectors. Midcap, Smallcap indices also outperformed the benchmarks, both gaining 1 per cent.
The sentiment in India mirrored a generally upbeat session across most Asian peers. Japan’s Nikkei 225 jumped by more than 2 per cent, while South Korea’s KOSPI rallied by nearly 4 per cent. This follows a positive close on Wall Street, where the Dow and Nasdaq both edged higher on Tuesday evening.
However, the commodities market told a different story. While oil remains stubbornly expensive, precious metals saw a downward trend, with gold and silver prices both sliding in early Wednesday trade.
Despite the green screens, caution remains the watchword. VK Vijayakumar of Geojit Financial Services warned that the ongoing war has created a level of uncertainty that makes even seasoned experts hesitant to predict a definitive trend. His advice to the average retail investor was simple: stay the course with existing investments and continue with systematic investment plans (SIPs) rather than trying to time this volatile market.
Also read: Sensex, Nifty extend gains, climb 1 pc
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