Sensex, Nifty Open Higher Amid IT Stock Surge Despite Israel-Iran Tensions

Sensex, Nifty Start Week on Strong Note as IT Stocks Rally Despite Geopolitical Jitters.

Indian benchmark indices opened higher on Monday, buoyed by gains in IT stocks, even as global markets grappled with tensions stemming from the Israel-Iran conflict. At 9:29 am, the S&P BSE Sensex rose 257.49 points to 81,376.09, while the NSE Nifty50 advanced 83.20 points to 24,803.55.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the prevailing geopolitical uncertainty has triggered a mild risk-off sentiment globally. “Safe-haven buying is supporting gold, and the dollar remains weak. Yet, there is no panic in equity markets,” he said. He added that a major market disruption would likely occur only if Iran moves to close the Strait of Hormuz — a low-probability scenario at present.

Top Gainers and Losers

Power Grid Corporation led the Sensex gainers, climbing 1.17%, followed by UltraTech Cement (1.07%), Bharti Airtel (0.89%), HCL Technologies (0.86%), and Larsen & Toubro (0.83%).

On the downside, Tata Motors slid 3.15%, making it the worst performer. Adani Ports (-0.69%), Axis Bank (-0.59%), Kotak Mahindra Bank (-0.31%), and State Bank of India (-0.28%) also saw early losses.

Broader Market and Sectoral Trends

Despite the headline indices’ gains, broader market indices were under pressure. The Nifty Midcap 100 fell 0.38% and the Nifty Smallcap index declined 0.79%. Meanwhile, market volatility eased, with India VIX dropping 2.80%.

Sector-wise, Nifty IT led the gainers with a 0.54% rise, followed by modest gains in Nifty Oil & Gas (0.16%), Financial Services (0.04%), and FMCG (0.03%).

Several indices traded in the red, including Nifty PSU Bank (-0.94%), Media (-0.84%), Auto (-0.67%), Metal (-0.46%), Realty (-0.37%), Private Bank (-0.21%), Consumer Durables (-0.12%), Pharma (-0.10%), and Healthcare (-0.02%).

Long-Term Outlook
Dr. Vijayakumar pointed out that historically, periods of global uncertainty have presented attractive buying opportunities for long-term investors. “Interestingly, this time the risk-off sentiment hasn’t triggered major selling, keeping equity valuations elevated. With sustained retail interest and mutual fund inflows, valuations are likely to remain high. Long-term investors can consider adding fundamentally sound stocks — particularly in financials — at relatively better valuations,” he advised.