Muthoot Finance, BEL to MCX: 19 Nifty 500 Stocks Rise Despite Geopolitical Uncertainty

Even with markets wobbling under pressure from rising tensions in the Middle East and stubbornly high oil prices, some Indian stocks just won’t quit. This week, 19 companies from the Nifty 500 index hit fresh 52-week highs, proving that even in shaky times, opportunity doesn’t always disappear, especially in the non-banking financial company (NBFC) space.

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Global Tensions vs Market Resilience

Let’s set the scene. Conflict between Israel and Iran escalated, with reports of Israeli strikes on Iranian nuclear sites and Iran firing back with missiles and drones. That pushed Brent crude oil prices up nearly 3% on Thursday, with no signs of cooling by Friday. Unsurprisingly, investors grew cautious, retreating into safer assets.

In India, the mood was wary. The Sensex dropped 82.8 points (0.10%) to close at 81,361.9, while the Nifty 50 slipped 18.8 points (0.08%) to 24,793.3. That made it three consecutive down days. Trading volumes also thinned, and mid- and small-cap stocks, already seen as pricey, continued to struggle.

NBFCs stand tall on rate cut boost

Here’s where things get interesting. While broader indices stayed stuck between 24,500 and 25,000, NBFCs stole the show. The Reserve Bank of India surprised markets with a 50-basis-point cut in the repo rate and a 100-basis-point drop in the cash reserve ratio. That’s the central bank pumping more money into the system to boost lending.

Gold-loan NBFCs, in particular, received an extra boost after regulators raised the loan-to-value ratio, enabling them to lend more against gold. That makes these firms more profitable and suddenly very attractive to investors.

Stock spotlight: Muthoot Finance

Muthoot Finance stood out this week. The gold-loan giant not only broke its previous high but also posted strong financials, up 51% over the past year and boasting 34% revenue growth. That’s well above its three-year growth average.

Although the stock dipped 1.4% on Friday, it remains strong. Between better lending conditions and supportive policy changes, Muthoot is staying well above its 200-day moving average, a technical signal that bulls love.

Defence stocks in Focus: BEL & Solar Industries

Defence stocks also had a moment. BEL hit ₹407.50, and Solar Industries soared to ₹17,300. One big driver? BEL’s upcoming inclusion in the Sensex on 24 June. Analysts expect more than $700 million in passive fund flows to come its way, along with Trent and other index entrants.

Volatility fuels MCX rally

Meanwhile, MCX rode the wave of market volatility. With traders flocking to energy and gold futures amid geopolitical chaos, volumes surged. That pushed the stock to an all-time high of ₹8,029.50.

Investors are keeping their eyes on a few key things:

• Middle East conflict: Any easing of the Israel-Iran situation could lift sentiment globally.
• Oil prices – Brent is already nearing $85 per barrel. More upward movement could mean more pressure on markets.
• Sensex reshuffle: BEL and Trent join on 24 June. Expect heavy passive buying.
• Corporate earnings (FY25-26) – The next earnings season could bring fresh clues, especially from NBFCs riding the rate-cut tailwinds.

Final thoughts

Even with so much global noise, Indian markets aren’t standing still. This week’s rally in 19 Nifty 500 stocks shows that money is still flowing, albeit selectively. NBFCs have received a clear boost from RBI moves and changes to gold loans. Defence and commodity plays are also benefiting from global uncertainty.

Still, there’s caution in the air. Without a clear break in geopolitical tensions or a dip in oil prices, volatility will likely continue. However, for investors who stay sharp and pick their spots, especially in strong, policy-supported sectors, there is still room to grow.

Bottom line? Stay alert, stay flexible, and don’t overlook the opportunities that lie within all this uncertainty.