Markets Defy Global Shocks: Nifty and Sensex Erase Opening Dip Forced by US-Iran Conflict
The Indian stock market bounced back quickly on Tuesday morning, erasing early losses caused by new global tensions. The NIFTY 50 climbed back above the 24,050 mark, while the SENSEX gained over 50 points after an initial 130-point drop. While news of fresh US air strikes in Iran pushed global crude oil prices up to $98 per barrel, strong company profits from auto part makers like Amara Raja and Suprajit helped local investors look past the global worry.
- Republic Business
- 3 min read
Indian stocks showed strength on Tuesday, recovering from an early sell-off within minutes of the opening bell. The market started the day with losses as investors reacted to news of fresh US military strikes in southern Iran. This news disrupted ongoing peace talks and sent global energy prices higher.
At the open, the 30-share BSE Sensex dropped 132 points to 76,356. However, strong buying by domestic funds helped the index reverse its direction quickly, lifting it 52 points higher to 76,541. The broader NSE Nifty 50 followed the same path, erasing its early losses to trade steadily at 24,052.
This quick recovery follows a massive influx of money on Monday. Institutional data showed that local domestic funds bought shares worth ₹3,856 crore, while foreign investors also supported the market by buying shares worth ₹821 crore.
Auto Component Stocks Jump
While global news caused some nervousness, specific mid-sized companies saw huge trading volumes after announcing their latest quarterly results.
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Amara Raja Energy & Mobility was one of the biggest gainers in early trade. The battery maker reported a massive 94.5 percent jump in net profit, reaching ₹314.3 crore for the March quarter. Total revenue grew by 15.5 percent to ₹3,535.8 crore, which kept investors happy despite a slight dip in profit margins.
At the same time, Suprajit Engineering saw heavy buying from big institutions. The auto parts company posted a massive 161.7 percent jump in net profit to ₹71.1 crore. Its quarterly revenue grew 18.8 percent to ₹1,041.9 crore, making it a top favorite for intraday traders today.
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Mixed Day for Shipping and Energy Companies
State-run shipping giant Container Corporation of India (Concor) faced a tough opening. Concor reported a 12.4 percent drop in net profit to ₹262.7 crore, while its revenue slipped slightly by 1.1 percent. To keep investors calm, the company announced a final dividend of Re 1 per share, preventing a major drop in its stock price.
Meanwhile, oil marketing companies like BPCL and HPCL saw some minor profit-booking. The sudden jump in Brent crude oil prices to $98.12 per barrel renewed fears of higher raw material costs for fuel retailers, stopping their recent rally.
Local Factors Keep Market Safe from Deep Falls
The India VIX index, which measures market fear, stayed calm below the 17 mark despite the military escalation in West Asia. Market experts noted that Indian stocks are increasingly staying stable because of steady company profits and a strong currency.
The Indian rupee opened stronger at 95.23 against the US dollar, continuing its recovery from recent lows. This stability in the rupee has given local investors a strong safety cushion ahead of the monthly derivatives expiry.