Indian benchmark indices ended lower in a volatile trading session on Tuesday as a rebound in crude oil prices and renewed geopolitical tensions weighed on investor sentiment. The BSE Sensex declined 479.26 points or 0.63% to settle at 76,009.70, after falling as much as 579 points during the day, while the NSE Nifty50 dropped 118 points or 0.49% to close at 23,913.70, slipping below the key 24,000 mark once again. According to Outlook Business, the decline came after Brent crude climbed nearly 3% to $98.96 a barrel, raising concerns around imported inflation, India's fiscal position and currency stability. Market sentiment weakened after reports suggested fresh US military operations in southern Iran, even as diplomatic discussions between Washington and Tehran continued. The Indian rupee fell 0.47% to close at 95.68 against the US dollar after crude prices moved higher and optimism around a quick geopolitical resolution faded.
Rupak De, Senior Technical Analyst at LKP Securities, noted that the index witnessed selling pressure at higher levels but buying support remained visible. As reported by Outlook Business, the Nifty slipped back below 24,000 as sellers continued to dominate at higher levels, however, the index found support near the 20EMA on the hourly chart, indicating buying interest at lower levels. On the upside, 24,200 is likely to act as an immediate hurdle, while support is placed near 23,900. A breach below support levels could trigger additional weakness, according to De's analysis. Vatsal Bhuva of LKP Securities said Nifty Bank continues to hold a positive undertone despite witnessing some profit booking after its recent rally, with buying support expected to remain intact as long as the index stays above key support zones, suggesting the broader bullish structure has not been damaged despite Tuesday's volatility.
Frontline indices on Wall Street traded mixed on Tuesday after a long weekend with markets remaining shut on Monday on account of the Memorial Day holiday. According to The Economic Times, while uncertainty over the Iran-US conflict continues to linger, tech stocks kept the mood high amid AI trade driving the equities while earnings remain upbeat. The S&P 500 and the Russel 2000 both touched intraday record highs on Tuesday, underscoring the strength of the recent rally. U.S. Secretary of State Marco Rubio said that the deal with Tehran could "take a few days," while Iran's Tasnim news agency reported that Tehran was seeking the release of $24 billion of Iranian funds frozen overseas. European shares slipped on Tuesday as doubts over the prospects of a deal to end the conflict with Iran weighed on sentiment after the U.S. launched what it said were defensive strikes in the south of the country. The pan-European STOXX 600 fell 0.6% to 628.01 points, with most regional bourses trading lower.
Market breadth remained weak with several stocks ending in lower circuits, reflecting cautious sentiment beneath headline indices. According to Outlook Business, around 84 stocks hit lower circuits, with the sentiment meter favouring bears despite the broader market breadth staying positive. Among the most active stocks in terms of turnover were Mankind Pharma (₹322 crore), Muthoot Finance (₹306 crore), Hitachi Energy India (₹292 crore), Apollo Micro Systems (BoB, ₹212 crore), and Reliance Industries (RIL, ₹177 crore). In volume terms, Vodafone Idea (4.72 crore shares), JP Power (1.54 crore shares), and YES Bank (1.37 crore shares) were among the most actively traded stocks. According to The Economic Times, 143 stocks hit their 52-week highs while 40 stocks slipped to their 52-week lows. Among the stocks that hit their 52-week highs included Acutas Chemicals, Adani Energy Solutions, Adani Enterprises, Biocon, Dee Development Engineers, Granules India and HFCL.
Among sectoral indices, Nifty Metal was among the few gainers and rose 1.10%, while select indices including chemicals, IT and telecom also closed with marginal gains. However, most sectors ended in the red, led by consumer durables. According to Outlook Business, Bharti Airtel, Trent, Bajaj Finance, Titan, TCS and HDFC Bank emerged among the top drags on benchmark indices. On the other hand, Tech Mahindra, Eternal, Maruti and Adani Ports provided some support. Despite the broader weakness, the resilience in midcaps remained noteworthy, with the segment touching an all-time high during the session. Vinod Nair, Head of Research at Geojit Investments, noted that sustained domestic institutional flows continue to support confidence in earnings despite foreign fund-related concerns.
