Indian stock markets ended slightly higher on Monday in a volatile trading session, recovering from the previous sharp losses, even as rising geopolitical tensions in the Middle East kept investor sentiment cautious.

Both benchmark indices — the BSE Sensex and the Nifty 50 — witnessed choppy movements throughout the day before closing in the green, supported by selective buying in key sectors.

Volatile trading session with mild recovery

The market opened on a weak note, tracking global cues, but soon saw intermittent buying that helped indices recover. However, the session remained highly volatile, with frequent swings between gains and losses.

Investors showed caution after the previous session’s sharp decline, and the recovery was largely driven by value buying in select large-cap stocks rather than broad-based optimism.

Global tensions keep investors on edge

The ongoing Middle East conflict continues to weigh on global financial markets, including India. Concerns over rising crude oil prices and potential supply disruptions have made investors wary.

India, being a major oil importer, is particularly sensitive to any spike in crude prices, which could impact inflation and fiscal stability. This has led to a cautious approach among market participants.

Sector-wise performance mixed

Sectoral indices showed mixed trends during the session. Banking and IT stocks provided some support to the market, while FMCG and metal stocks witnessed selling pressure.

Auto and pharma stocks saw selective buying, indicating that investors are rotating towards relatively stable sectors amid uncertainty.

Midcap and smallcap stocks underperformed compared to benchmark indices, reflecting risk aversion among investors.

Key factors driving the market

Apart from global geopolitical concerns, investors are also closely watching:

• Movement in crude oil prices
• Rupee performance against the US dollar
• Foreign institutional investor (FII) activity
• Upcoming economic data and policy cues

Any negative developments in these areas could increase volatility in the near term.

Outlook remains cautious

Market experts believe that while the slight rebound offers temporary relief, the overall trend remains uncertain. Sustained upside will depend on stability in global markets and easing geopolitical tensions.

Investors are advised to remain cautious and focus on fundamentally strong stocks, as volatility is expected to persist in the coming sessions.

Overall, the Indian stock market managed to recover marginally after recent losses, but the underlying sentiment remains fragile, with global developments continuing to dictate short-term market direction.