Indian equity benchmarks opened on a cautious note on Tuesday despite weak global signals, as investors tracked developments in global markets, corporate earnings and commodity prices. At around 9:05 AM, the Sensex was trading at 76,954.75, up 118.97 points or 0.15 per cent, while the NSE Nifty50 slipped 8.05 points, or 0.03 per cent, to 23,987.90. The BSE Sensex rang the opening bell near 76,800, slipping a little over 30 points, while the NSE Nifty50 stood just under 24k, down 18 points, as of 9:15 AM. The cautious opening comes after benchmark indices staged a sharp rebound in the previous session, with broad-based buying lifting market sentiment. GIFT Nifty was quoted at 24,005, down 23 points, reflecting investor caution amid mixed global cues, signalling a subdued start for domestic markets. According to CNBC TV18, the Nifty entered a consolidation phase on Tuesday, ending little changed after spending the monthly expiry session in a tight trading range, with the index opening 24 points lower and spending most of the session trading within a narrow 90-point range.
Global markets are experiencing significant volatility as Asian markets face sharp declines with Japan's Nikkei 225 falling 3.84% and South Korea's Kospi plunging 8% in Tuesday morning trading. According to Upstox, the sharp sell-off across Asian equity markets, led by technology stocks, is being driven by renewed concerns over elevated AI-related valuations and weakening global risk appetite. The Korean KOSPI was dragged down by SK Hynix (-10%) and Samsung (-8%) while Hong Kong's Hang Seng was trading 0.8% higher. The Nasdaq 100 futures also edged lower in early Asian trading, suggesting that concerns over AI-related valuations remain a dominant theme despite the easing geopolitical backdrop. Most Asia-Pacific markets traded lower on Tuesday as investors pared exposure to technology stocks before earnings announcements from Amazon, Meta Platforms and Apple. US markets delivered mixed performance overnight, with the Nasdaq Composite edging 0.18% lower while the Dow Jones Industrial Average gained 0.51%.
On Tuesday, the benchmark indices entered a consolidation phase after Monday's sharp rebound, with the Nifty closing at 23,985, down 0.04% after spending most of the session trading within a narrow 90-point range. According to CNBC TV18, the index opened 24 points lower and settled near the day's low, with buyers initially attempting to push the index above the previous day's high but gains proved short-lived as selling pressure emerged, wiping out the early advance. Among the Nifty constituents, TCS, Eternal, and Tech Mahindra were the top gainers, while Hindustan Unilever, BEL, and Coal India ended as the biggest losers. Sectoral performance remained mixed, with IT, Realty, and Consumer Durables leading the gains, while FMCG, PSU Banks, and Metal were the top laggards. The broader market also lacked momentum, with the Nifty Midcap 100 edging up 0.08%, while the Nifty Smallcap 100 declined 0.22%.
According to CNBC TV18, Nagaraj Shetti of HDFC Securities said the Nifty's underlying short-term trend remains positive despite the recent consolidation, with the index facing a key overhead resistance around 24,100, indicating there is a possibility of some consolidation or a minor dip in the near term before a decisive breakout. Nandish Shah of HDFC Securities noted that the Nifty faced resistance near its 20-day EMA at 24,027 before turning lower, with the broader trend remaining weak as the index continues to trade below its 20-day and 100-day EMAs, requiring a decisive close above 24,200 to confirm a bullish trend reversal. Rupak De of LKP Securities said the absence of the usual monthly expiry volatility reflected indecisiveness among traders, with the Nifty closing around its 50-day EMA for the second straight session, resistance remaining at 24,050 while support is seen at 23,920, and a decisive move above 24,050 could pave the way for a rally towards 24,500 in the short term.
Crude oil prices continued to soften as optimism grew over a possible diplomatic breakthrough between the United States and Iran. US President Donald Trump said discussions with Tehran were progressing well, although he warned that military action remained an option if negotiations failed. Iranian officials also struck a relatively positive tone regarding the talks. The July Brent crude futures contract traded at $87.52 per barrel, down 0.95 per cent during early trade. Lower crude prices are generally viewed as positive for India, as they help ease inflationary pressures and reduce import costs. Precious metals also witnessed selling pressure, with gold futures down 0.67% and silver futures declining 1.79% in early trade as investors shifted focus towards upcoming macroeconomic data and corporate earnings. Looking ahead, market participants are expected to closely monitor quarterly earnings announcements from major global technology companies, movements in crude oil prices and developments surrounding geopolitical tensions through the day's trade. According to Kotak Securities, investors should use any further recovery to trim weaker long positions near the resistance zone, while considering selective fresh buying on declines closer to support levels where the risk-reward equation appears more favourable.
