Indian equity benchmarks opened lower on Tuesday, tracking sharp declines in US markets amid concerns over tariffs, geopolitical tensions, and AI-related disruptions impacting global technology stocks. At the opening bell, the Nifty 50 slipped 71.20 points, or 0.28%, to 25,641.80, while the BSE Sensex declined 242.12 points, or 0.29%, to 83,052.54. The Nifty 50 recovered 83.60 points from its provisional close of 22,516.40, while the Sensex gained back 228.88 points from its provisional closing level of 72,894.95. According to ANI, sectoral indices largely remained in the red with Nifty IT declining sharply by 2.27%, Nifty Auto falling 0.65%, and Nifty FMCG down 0.26%. However, the Nifty Metal index showed some resilience, gaining 0.26%. The Nifty India Defence Index declined over 7%, making it the worst-performing sector, as elevated valuations and broader market weakness intensified selling pressure.
Indian markets face significant pressure as crude oil prices staged a pullback from four-month highs, dropping 2% after bouncing back over 63% in just four months from $70 per barrel in July to over $115 per barrel in October. Despite this recent decline, oil price volatility touched its peak as supply disruption fears persist. Escalating US-Iran tensions, stalled diplomatic talks and reports of potential renewed US-Israeli strikes on Iranian nuclear and military assets have heightened geopolitical risks. Iran's threat of a more aggressive military response and rising hostilities in the Strait of Hormuz, a critical global oil transit route, further fuelled concerns over supply disruptions and inflationary pressures. Last week, Nifty50 declined 2.4%, while the Midcap index fell 5.6% to a six-month low, with the Smallcap index dropping 7.3%, its worst weekly performance in 20 months. The sell-off was significantly sharper in midcap and Smallcap stocks, reflecting heightened risk aversion and broad-based weakness across the market.
Despite the 2% drop in crude oil prices, broader pessimism in Indian stock markets continued to pull oil-sensitive stocks lower on Monday. Asian Paints, Berger Paints, and Indigo Paints fell as much as 2%, shrugging off oil price fall optimism. Additionally, tyre stocks like JK Tyres, Apollo Tyres, MRF and Balkrishna Industries plunged as much as 3% on Monday morning. However, oil marketing companies like Bharta Petroleum, Hindustan Petroleum and Indian Oil opened in green with gains of up to 2.4%. At the broad level, all oil sensitive stocks have witnessed a steep fall in recent months after crude oil prices bounced from the lows. The mixed performance reflects the complex dynamics of supply chain disruptions and demand-side pressures affecting different sectors differently.
US stocks fell sharply on Monday as investors remained cautious following a technology-led sell-off and geopolitical uncertainties. The Dow Jones Industrial Average fell 821 points, or 1.66%, to close at 48,804, while the S&P 500 declined 1.04% to settle at 6,837. The Nasdaq Composite fell 1.21% to close at 22,608. As reported by ANI, Asian markets showed mixed trends with Japan's Nikkei 225 rising 0.96%, Taiwan's weighted index gaining 2.41%, and South Korea's KOSPI advancing 1.44%. In contrast, Singapore's Straits Times index fell 0.67%, while Hong Kong's Hang Seng index declined over 2%. India's trade engagement gained significant momentum with US Secretary of State Marco Rubio stating that the India-US trade deal was around 99% complete and could be finalised within weeks, although differences over wording and tariff-related details remain unresolved.
The Jio Platforms IPO continues to show strong investor interest with overall subscription at 22.19x on Day 3, including QIB subscription at 70.55x. According to NDTV Profit, Paras Healthcare IPO achieved 2.34x overall subscription with retail participation at 2.10x. The EAAA India Alternatives IPO is set to open on October 26 with a total issue size of ₹1,200 crore entirely through offer for sale. Voltas witnessed bulk deals with Vidyaniti LLP buying 16.75 lakh shares at ₹948.50 per share. Broader market indices on the NSE also traded lower in early deals with Nifty 100 declining 0.47%, Nifty Midcap 100 falling 0.38%, and Nifty Smallcap 100 slipping 0.43%.
