Indian stock markets opened lower as the rupee hit a fresh lifetime low, influenced by elevated oil prices and US President Trump's rejection of Iran's peace proposal. According to reports from The Economic Times, the Sensex declined over 700 points to 75,307, while the Nifty fell 194 points to 23,626 as of 9:33 am. This came as India VIX, which measures market volatility, inched up slightly to 18.56. The bearish sentiment was broad-based, with Nifty Smallcap 100 and Nifty Midcap 100 indices also slipping into the red.
IT stocks including Infosys, Tech Mahindra, TCS and HCL Tech were the top losers, falling 2-3% despite the sharp weakness in rupee. As reported by The Economic Times, Adani Ports, Maruti Suzuki, Asian Paints, ICICI Bank, Bajaj Finserv, Bajaj Finance, HDFC Bank, Hindustan Unilever and other stocks followed, falling around 1% each. The bearish market sentiment was broad-based, with around 1,847 stocks declining and 737 stocks advancing on NSE, while 96 remained unchanged. Nifty IT declined more than 2% to emerge as the top loser, while Nifty Metal gained more than 0.5%. According to Upstox Securities, HDFC Bank, Infosys, ICICI Bank, Tata Consultancy Services, Reliance Industries and Bajaj Finance were top drags on the SENSEX.
Oil remained elevated as fading hopes for a sooner end to the Middle East conflict spurred worries over further prolonged closure of the Strait of Hormuz, a narrow 33-kilometre waterway connecting the Persian Gulf with the Gulf of Oman that handles over 20% of the world's daily oil and gas shipments. According to The Economic Times, Brent crude gained around 1% to hover above $105 per barrel on Tuesday morning, while WTI Crude also gained nearly 1% to $99 per barrel. These developments further faded hopes for a sooner end to the conflict in the Middle East.
The Indian rupee dropped to a fresh all-time low on Tuesday as investors worried over the threats to the ceasefire and rally in oil prices, deepening worries over the economic hit to a net energy-importing economy. As reported by The Economic Times, the Indian currency fell to 95.55 per dollar, down 0.2% from its previous close and breaching its previous all-time low of 95.4325 hit last week. The weakening rupee added to market concerns amid the broader geopolitical tensions.
Investor mood remained cautious amid continuing FII selling, weakening rupee, and uncertainties with global macro fundamentals, said Vikram Kasat, Head Advisory, PL Capital. According to The Economic Times, he added that domestic liquidity and improved market breadth continue to act as buffers. Nifty is expected to find immediate support near the 23550–23600 range, where some buying interest or recovery could emerge, while any pullback rally is likely to face selling pressure near the 23800 mark. The broader strategy remains "sell on rise," though a short-term contra trade can be considered near the 23500–23550 support zone for an intraday recovery bounce.
