Sensex, Nifty Close Higher Despite Israel-iran War; It, Banking Shares Lead Gains

SUMMARY

The benchmark indices rallied connected Monday contempt nan ongoing warfare betwixt Iran and Israel. Sensex jumped 677 points to 81,796, while nan broader Nifty closed 228 points higher astatine 24,946. Investor wealthiness roseate by Rs 3 lakh crore to Rs 450.18 lakh crore connected BSE coming against Rs 447.21 lakh crore connected Friday. 

Midcaps and smallcaps shares ended successful nan greenish successful nan existent session. On BSE, nan midcap scale roseate 424 pts to 46,105 and nan small-cap scale climbed 203 pts to 53,573. 

On a sectoral basis, superior goods, user durables, IT and banking indices were nan apical gainers connected BSE ,rising  up to 597 pts. 

Despite ongoing geopolitical tensions betwixt Israel and Iran, nan marketplace has shown resilience, bolstered by gains successful large-cap stocks arsenic investors attraction connected semipermanent fundamentals. Vinod Nair noted, "Geopolitical developments successful nan Middle East are apt to power near-term marketplace sentiment, pinch immoderate signs of de-escalation being intimately monitored." The lipid and state assemblage has recorded robust gains, while nan IT assemblage has outperformed, driven by anticipation of nan upcoming US Fed argumentation meeting.

Rupak De, Senior Technical Analyst astatine LKP Securities, observed a rally successful nan scale arsenic it reclaimed nan 21-EMA aft a little dip. "On Friday, it had already recovered support astatine nan caller consolidation low," he said. The anemic FII long-short ratio of astir 20% successful scale futures has contributed to nan betterment of Nifty. Investors await nan Fed's commentary post-rate announcement, pinch a rally towards 25,350 looking probable erstwhile Nifty crosses nan 25,000 mark. The downside support stands astatine 24,850.

Small-cap stocks are expected to underperform owed to precocious valuations and deficiency of short-term catalysts. As geopolitical developments proceed to play a important role, analysts are watching for immoderate signs of easing tensions, which could stabilize marketplace sentiment. Meanwhile, sectors specified arsenic lipid and state and IT stay areas of spot amidst these dynamics, pinch nan second buoyed by expectations surrounding nan Fed's monetary argumentation direction.

Published on: Jun 16, 2025 4:18 PM IST