Indian stock markets ended Tuesday’s session lower as global risk-off cues, rising geopolitical fears and volatile crude oil prices kept investors anxious. Benchmark indexes declined more in early trade but regained part of the intraday loss by the close.
But at the close of the day, the Sensex fell 251.60 points to 77,018, and the Nifty 50 declined 86.50 points to close the day at 24,033. The two indices were down by over 420 points and 145 points, respectively, until mid-session, and the session remained subdued.
The indexes were rather sturdy overall. The NSE Midcap 100 index rose about 0.2%, and the Smallcap 100 was up almost 0.3%, suggesting a buy call in the broader market and not just the frontline businesses.
Geopolitical concerns lift oil prices; investors apprehensive
Markets are also reacting to concerns about strains in US-Iran ties and the possibility of interruptions at the Strait of Hormuz in wartime situations.
But crude oil prices have pulled back from recent highs. Brent crude fell more than 2.2% to $111.91 a barrel, and WTI crude was down 2.1% at $104.15 a barrel in intraday trade. Despite the fall, inflation and import concerns remain on investors’ radar as elevated levels continue to put them in the spotlight.
The rupee drops further to record-low levels
The Indian currency came under more pressure during the session. The rupee fell to a record low of 95.43 against the dollar, weighed down by dollar strength and continued foreign money selling.
The weakening currency also has sparked wider macro concerns, particularly for import-heavy sectors like energy, chemicals and aviation.
Gold and silver surge on safe-haven demand
Buying into safe havens continued to underpin bullion prices. In the local market, 24-carat gold was trading higher at ₹1,50,540 per 10 grams at the time of writing the report. Silver was up to ₹2,46,500 per kilogram.
The increasing prices of precious metals reflect the rising uncertainty in global markets as more and more investors are putting their money into traditional safe assets.
M&M is the top gainer in Nifty; ICICI Bank is the top loser
Sector-specific stock activity drove the index.
Mahindra & Mahindra (M&M) was the biggest gainer on the Nifty 50, climbing 3.68% to close at ₹3,220.8 on strong buying support. Other gainers included UltraTech Cement, Hindalco Industries, Bajaj Finserv, HDFC Life Insurance, Nestle India and Bajaj Finance, rising up to 1.54%.
The index was pulled down by its worst performers
On the other hand, some blue chip names gave up their gains and pulled the benchmark down. Key laggards include ICICI Bank, Coal India and Jio Financial Services, which dragged the overall negative close.
Market Outlook
Traders are likely to be cautious in the short term, as global crude volatility, geopolitical uncertainties, and currency pressure continue to dominate sentiment. However, the resiliency in midcap and smallcap divisions indicates underlying strength in broader market participation, even while frontline indices remain range-bound.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The experts give their recommendations, suggestions, views, and opinions. Please consult a financial advisor before making any investment decisions.)
