Synopsis : Indian equity markets opened on a cautious note as investors digest geopolitical tensions in West Asia and a status quo decision by the US Fed. Nifty trades around 24,800 while auto and finance stocks provide some stability.
Markets in Pause Mode as Global Cues Dominate
Mumbai, June 19 – Indian stock markets witnessed a muted opening on Thursday amid simmering tensions between Iran and Israel and the US Federal Reserve's decision to hold interest rates steady. The Nifty 50 opened flat at 24,812, while the BSE Sensex dipped slightly by 19 points to 81,425, reflecting a ‘wait and watch’ mood among investors.
The Bank Nifty slipped 69 points to 55,760, but midcap indices remained marginally positive, with the Nifty Midcap 100 up 50 points at 58,159.
Analysts Caution on Range-Bound Trade
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, stated, “The Nifty is likely to remain range-bound between 24,500 and 25,000, unless there’s a major breakthrough or escalation in the Israel-Iran conflict. A spike in crude oil prices due to instability in the Strait of Hormuz could break support levels quickly.”
On the macro front, the US Fed’s commentary remained in line with expectations. Jerome Powell's remarks about a “solid economy despite uncertainty” offered some reassurance but didn’t spark any major rally.
Market Movers
Top Gainers (Nifty 50):
Wipro
Eicher Motors
Grasim
Titan
Apollo Hospitals
Top Losers (Nifty 50):
Tech Mahindra
Adani Ports
IndusInd Bank
Infosys
HCL Technologies
Geopolitical Flashpoint: Israel-Iran Conflict Enters Day 7
The West Asian conflict continues to overshadow global markets. On day seven, Israel claimed strikes on Tehran’s military bases, while Iran responded with ballistic missile attacks targeting Israeli installations.
President Trump, in a White House Situation Room meeting, warned Iran that “patience has already run out” but hasn’t yet authorized US military action. Ayatollah Khamenei countered with a stern message, warning that any US intervention would cause “irreparable damage.”
Fed Holds Rates, Uncertainty Over Cuts
The US Federal Reserve held interest rates steady for the fourth consecutive meeting. While officials still forecast two rate cuts by the end of 2025, there’s growing division within the Fed. The central bank’s revised outlook now includes slower growth, higher unemployment, and sticky inflation—fueling uncertainty in the market.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Investing in the stock market involves risks. Readers are advised to consult with a certified financial advisor before making any investment decisions.
