The Indian stock market benchmark indices ended Tuesday's session on a negative note, with Nifty 50 closing down 112.10 points (0.46%) at 24,471.70. The index made a flat-to-negative start following weak cues from other Asian markets and continued its pessimistic trade throughout the session. Most sectoral indices ended in red, led by Cement, FMCG, and Realty stocks. The Sensex fell 388.19 points (0.49%) to settle at 78,154.25, with the Nifty witnessing selling pressure during the session and slipping to an intraday low of 24,429.25. The market decline was attributed to rising crude oil prices, persistent uncertainty over US-Iran developments, and reopening of the Strait of Hormuz, along with cautious sentiment following the Ministry of Statistics & Programme Implementation's report showing no expansion or contraction in India's job market during the April-June quarter.
According to Bajaj Broking Research, the Nifty 50 formed a bearish candle on the daily chart, recording both a lower high and a lower low, indicating profit booking at higher levels during the weekly expiry session. Despite the recent weakness, the broader technical setup remains relatively constructive. The index has spent the last six sessions consolidating within a narrow range after retracing only 23.6% of its sharp seven-session rally from 23,606 to 24,774. The technical formation suggests the market may be forming a higher base rather than entering a deeper correction. We expect the index to extend the last 6 sessions consolidation and trade in the broad range of 24,200-24,700, with higher crude prices keeping selling pressure at higher levels. A sustained breakout above 24,700 would be an important technical trigger for the Nifty, potentially signaling a resumption of the broader uptrend towards 25,000-25,200 over the coming weeks.
Oil prices climbed on Tuesday, with Brent crude futures hitting a one-week high of $90 per barrel, supported by growing uncertainty over a potential US-Iran peace agreement and attacks on two vessels that raised concerns over possible disruptions to oil supplies from the Middle East. At 1655 IST, the October futures contract of Brent Crude oil was at $87.3 per barrel. Both benchmarks ended more than $1 higher in the previous session, reaching their highest closing levels since July 31, following a roughly 5% surge on Monday as optimism over a possible peace agreement between the US and Iran weakened. The prospect of elevated energy costs is weighing on risk appetite, particularly in an oil-importing economy such as India, as noted by Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
On expiry day Tuesday, traders placed bearish bets in the options chain of the 50-stock index in contracts expiring next week, indicating sentiment in the market leans towards negative. Call and put contracts with a strike price of 24,500 expiring August 18 saw the next highest activity, with traders writing call contracts at 24,500-call and buying put contracts. At 24,500-call, the premium was around ₹140, the highest among other contracts, while at 24,500-put, the premium was ₹141.30, up 33% from Monday. This lack of buying interest from traders for some sessions now indicates that there could be a dip in the Nifty 50 towards 24,300 points before it rebounds from those lows, as noted by Nagaraj Shetti, technical analyst at HDFC Securities. Technical analysts expect the sentiment to remain positive as long as the index sustains above 24,400 points.
The derivatives market showed significant activity with Nifty August 2026 futures closing at 24,525.10 (LTP) at a premium of 53.40 points over spot closing, while Nifty September 2026 futures ended at 24,670.10 (LTP) at a premium of 198.40 points over spot closing. Nifty August futures saw an addition of 853 units, taking the total open interest to 1,87,316 units. Among the most active contracts, Life Insurance Corporation of India August 2026 futures traded at a premium of 1.25 points at 407.25 (LTP) with 29,271 contracts traded, followed by Infosys August 2026 futures at 1191.50 (LTP) with 21,784 contracts and Multi Commodity Exchange of India August 2026 futures at 2913.00 (LTP) with 21,174 contracts. The India Volatility Index (VIX) decreased by 3.73% and reached 11.79, indicating reduced short-term market volatility expectations.
The Indian rupee opened 10 paise lower at 95.39 against the US dollar amid higher crude oil prices, reflecting the broader impact of rising energy costs on the currency. Asian markets traded mixed on Tuesday as investors assessed geopolitical developments and awaited key US inflation data. South Korea's Kospi gained 0.3%, while broader regional markets remained range-bound. Japanese markets were closed for a holiday. Wall Street ended marginally lower overnight as hopes of a breakthrough in US-Iran negotiations faded, while weakness in semiconductor stocks also weighed on sentiment. The rupee's decline reflects the currency's sensitivity to crude oil price movements, as noted by market analysts tracking the commodity's impact on emerging market currencies.
