Markets Rebound Amid Geopolitical Tensions; Nifty Nears 25,000 as IT and Financial Stocks Lead Rally

The Nifty 50 closed higher by 0.92 per cent at 24,946.50, while the BSE Sensex ended up 0.84 per cent at 81,796.15. 

Market Update at 4:00 PM: India's key stock indices advanced on Monday, recovering from initial sideways movement, supported by gains in IT and financial stocks, even as concerns over the Israel-Iran conflict persisted.

The Nifty 50 closed higher by 0.92 per cent at 24,946.50, while the BSE Sensex ended up 0.84 per cent at 81,796.15. 

IT stocks led the rally, with the Nifty IT index climbing 1.6 per cent, while financials rose 0.8 per cent, snapping a four-day losing streak. HDFC Bank, the index heavyweight, gained around 1 per cent after Jefferies highlighted positives like robust loan growth, regulatory easing, and potential rate cuts.

All 13 major sectoral indices ended in the green. Broader markets also gained, with midcaps and smallcaps each advancing nearly 0.9 per cent. In contrast, Tata Motors fell 3.6 per cent after forecasting lower operating margins of 5 per cent-7 per cent for its luxury arm JLR in FY26, below its earlier 10 per cent target.

While domestic equities bounced back, geopolitical tensions remained elevated as Israel and Iran exchanged new attacks, raising fears of wider regional unrest. However, crude oil prices stabilised on Monday after Friday’s sharp 7 per cent jump, as supply infrastructure remained unaffected.

among the top draggers, shaving off 2.14 and 3.45 points from the index, respectively, each down by 0.01 per cent.

As of 15 May 2025, 14:09 IST, a total of 2,827 stocks were traded on the NSE. The market breadth remained positive with 1,900 stocks advancing, 856 declining, and 71 remaining unchanged. Notably, 54 stocks touched their 52-week high, while 11 hit a 52-week low. Additionally, 162 stocks were locked in the upper circuit, whereas 20 stocks were stuck in the lower circuit.

Market Update at 12:00 PM: India's key stock indices bounced back on Monday after opening flat, with support from gains in IT and financial stocks, recovering from two consecutive days of losses triggered by rising tensions between Israel and Iran.

As of 11:33 a.m. IST, the Nifty 50 had gained 0.75 per cent to reach 24,902.7, while the BSE Sensex advanced 0.68 per cent to 81,667.69.

The IT sector index climbed 1.1 per cent, and financials edged up 0.4 per cent, aiming to break a four-day losing streak. Heavyweights HDFC Bank and Reliance Industries both saw gains of around 1 per cent.

Tensions in the Middle East escalated over the weekend, as Israel and Iran exchanged fresh attacks, raising concerns of wider instability in the oil-rich region. In response, crude oil prices moved higher on fears of supply disruptions—a negative for oil-dependent India.

Oil and gas stocks benefited, with ONGC rising 2 per cent and Oil India up 1.5 per cent.

Out of 13 key sectoral indices, 11 were in the green, while smallcap and midcap indices remained largely unchanged.

On the downside, Tata Motors slipped 4 per cent after forecasting lower operating margins of 5 per cent-7 per cent for JLR in FY26, falling short of its earlier 10 per cent margin target.

Market Update at 10:30 AM: India's key stock indices showed minimal movement at the opening bell on Monday, taking a breather after two consecutive sessions of decline. Investor sentiment remained cautious amid ongoing tensions between Israel and Iran. As of 9:15 a.m. IST, the Nifty 50 edged up by 0.06 per cent to 24,732.35, while the BSE Sensex slipped slightly by 0.1 per cent to 81,034.45.

Out of the 13 major sectoral indices, eight began the day in positive territory, although the gains were limited. Meanwhile, Small-Cap and Mid-Cap indices remained largely unchanged in early trade.

The previous week ended on a negative note for both benchmarks, as renewed military action between Israel and Iran stoked fears of wider conflict in the Middle East. Over the weekend, further hostilities led to civilian casualties, intensifying concerns across global markets.

In broader Asia, market performance was muted, with the MSCI Asia ex-Japan index declining by 0.1 per cent. Crude oil prices continued to rise on worries over supply disruptions, which could affect countries like India that heavily rely on oil imports.

Pre-Market Update at 8:00 AM: Indian stock markets are expected to begin Monday’s session on a cautious note, following global market weakness. As of 7:16 AM, the GIFT Nifty stood at 24,777, up by 39 points from the previous close, hinting at a muted opening for the Nifty 50.

Asian equity indices opened in positive territory, while U.S. stock futures showed minor gains after a significant pullback last week on Wall Street. Investors will keep a close watch on developments in the Middle East, particularly the rising tensions between Israel and Iran. Other key market triggers this week include the U.S. Federal Reserve’s policy decision, fluctuations in crude oil prices, foreign capital movement, and major global and domestic economic cues.

Domestic Institutional Investors (DIIs) continued their buying spree for the 19th straight session. On June 13, DIIs made net purchases worth Rs 2,906.13 crore, while Foreign Institutional Investors (FIIs) pulled out Rs 1,233.47 crore from Indian equities.

Benchmark indices ended lower for the second consecutive day on Friday, impacted by geopolitical concerns. The Sensex lost 573.38 points (0.70 per cent) to close at 81,118.60. The Nifty 50 dropped by 169.60 points (0.68 per cent) to finish at 24,718.60.

Asian shares were trading in the green on Monday, ahead of key data releases from China. However, market sentiment remains fragile due to the intensifying conflict between Israel and Iran.

The Israel-Iran conflict escalated further over the weekend. Israel claimed to have intercepted a fresh missile barrage from Iran. Simultaneously, Iran reported that Israeli airstrikes had targeted its oil facilities and killed top officials, including the intelligence head of the Revolutionary Guard. The Israeli military also confirmed conducting major strikes on strategic targets in Iran.

U.S. markets ended Friday in negative territory, dragged down by tech and financial stocks. The Dow Jones Industrial Average fell 1.79 per cent to 42,197.79, while the S&P 500 slipped 1.13 per cent to 5,976.97. The Nasdaq Composite declined by 1.30 per cent, settling at 19,406.83. On a weekly basis, the Dow was down 1.3 per cent, the S&P 500 fell 0.4 per cent, and the Nasdaq slipped 0.6 per cent.

Crude prices continued their rally on supply disruption concerns amid renewed conflict in the Middle East. Brent crude rose 0.24 per cent to USD 74.41 per barrel, and WTI crude increased 0.37 per cent to USD 73.25.

Gold prices advanced further, driven by demand for safe-haven assets. Spot gold gained 0.4 per cent to reach USD 3,447.07 per ounce, touching its highest level since April 22 earlier in the session.

For today, Aditya Birla Fashion and Retail, Birlasoft, Central Depository Services (India), Chambal Fertilisers and Chemicals, Housing and Urban Development Corp, Indian Energy Exchange, Indian Renewable Energy Dev Agency, Manappuram Finance, RBL Bank and Titagarh Rail Systems Ltd continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.