Geopolitical Missiles Hit Indian Markets

Heightened geopolitical tensions led to heavy selling across sectors, but markets ended the fortnight with a surprise rebound. Will the momentum continue?

Indian benchmark indices experienced a roller-coaster ride over the past fortnight, influenced primarily by global developments. While the indices initially continued their upward momentum, inching closer to record highs, rising geopolitical tensions, particularly between Iran and Israel unsettled investor sentiment, leading to short-lived corrections. The broader markets bore the brunt of this volatility, with the BSE Midcap index falling 1.34 per cent and the BSE Small-Cap index tumbling around 2 per cent. In contrast, frontline indices showed greater resilience.