Indian Stock Market Opens Higher Amid Global Tensions
Market Overview
On Thursday, June 12, 2025, India's primary stock market indices, the Sensex and Nifty50, began trading positively. The Sensex, which tracks 30 major companies, increased by 56.53 points, starting at 82,571.67. Similarly, the Nifty50, representing the top 50 firms, rose by 23.05 points to reach 25,164.45.
Cautious Trading Environment
The Indian stock market opened cautiously, influenced by weak global signals and escalating geopolitical tensions between the United States and Iran. Investors appeared anxious as global market sentiment turned negative, impacting domestic indices during the initial trading hours.
Broader Market Sentiment
Despite the slight gains in the main indices, the overall market sentiment remained lackluster. The Nifty Next 50 index saw a minor decline of 0.02% shortly after the market opened. Additionally, the Nifty Smallcap index fell by 0.05%, while the Nifty Midcap index decreased by 0.06%, indicating pressure across the broader market.
Sector Performance
Sector-wise performance was mixed, with most indices showing losses except for Nifty Media and Nifty Pharma, which managed to remain in the green during the early session. Among the sectors that struggled, Nifty IT dropped by 0.43%, Nifty Realty fell by 0.21%, and Nifty Metal decreased by 0.25%. The Nifty FMCG index remained flat during the opening hours.
Asian Market Trends
Other Asian markets displayed a mixed performance on Thursday. Japan's Nikkei 225 index fell by 0.5%, Hong Kong's Hang Seng Index decreased by 0.56%, and the Taiwan Weighted index lost 0.8%. Conversely, South Korea's Kospi index rose by 0.9%, providing some relief to the otherwise cautious sentiment across Asia.
Expert Insights
Ajay Bagga, a banking and market expert, commented on the geopolitical concerns dominating the market. He stated, "Geopolitical issues are at the forefront today, with both the US and Iran taking firm stances ahead of their upcoming meeting. This situation has been a recurring theme, with the potential for an Israeli strike on Iran posing significant risks."
He added, "This is merely noise leading up to the third round of negotiations, as both sides aim for the most favorable terms. An attack on Iran could lead to widespread chaos in the region, which no rational government, including Iran's allies like China and Russia, would desire."
Market Trends Analysis
Akshay Chinchalkar, Head of Research at Axis Securities, remarked on the market trend, noting that although the Nifty closed higher the previous day, it fell from its intraday peak. He explained, "From a technical perspective, yesterday's candle was a doji with a slightly extended upper shadow, following the 'upside-gap two crows' pattern. It is crucial for bulls to maintain support at 25029 in the near term. If bears manage to push the index below the 24987–25029 range, a test of the 24800-24863 area is likely."