Indian equity markets began Tuesday's trading session on a bearish note, with both the Sensex and Nifty 50 declining amidst a backdrop of global market weakness and escalating geopolitical tensions in West Asia. High crude oil prices and upcoming Q4 earnings announcements also contributed to investor caution.
Market Snapshot: Sensex and Nifty Open Lower
At 9:17 am IST, the BSE Sensex recorded a decline of 191.58 points, or 0.25%, settling at 77,077.82. Earlier in the trade, the index had experienced a sharper fall, dropping as much as 524 points. Similarly, the NSE Nifty 50 slipped 77 points, or 0.32%, to 24,042.30, after briefly touching a low of 23,949.40.
Top Losers Among Sensex Constituents
- Bajaj Finance: Slumped 1.35% to Rs 937.35.
- Maruti Suzuki: Slipped 1.25%.
- Bajaj Finserv: Dropped 0.89%.
- HDFC Bank: Fell 0.90%.
- L&T: Declined 0.86%.
Factors Driving Market Downturn
The market's negative opening was primarily influenced by several factors:
- Weak Global Cues: Broader Asian markets traded lower, and Wall Street had closed in the red overnight, setting a cautious tone for Indian investors.
- West Asia Tensions: Rising hostilities in the Strait of Hormuz region have pushed Brent crude prices to around $113, creating headwinds for the market.
- Rising US Bond Yields: The US 10-year bond yield increased to 4.44%, alongside the rupee sliding to 95.23 against the dollar, which is unfavorable for Foreign Portfolio Investor (FPI) flows.
- Q4 Earnings: Investors are closely watching key Q4 earnings announcements scheduled for today, adding an element of uncertainty.
“The resumption of hostilities in the Hormuz region and Brent crude again spiking to around $113 are headwinds for the market. Also the US-10-year bond yield rising to 4.44% and rupee sliding to 95.23 level are unfavourable from the FPI flows perspective,” stated VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
Global Market Performance
Across Asia, markets largely traded lower. Hong Kong’s Hang Seng slumped 1.06% to 25,818.87. Japan’s Nikkei 225 and South Korea’s Kospi were closed for public holidays. In the US, the S&P 500 declined 0.41%, the Dow Jones Industrial Average slipped 1.13%, and the Nasdaq Composite edged down 0.19% in the previous session.
Technical Outlook
Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Ltd, indicated that the technical setup suggests a flat opening followed by range-bound and volatile trade. He set the immediate range for the Nifty 50 between 23,800 and 24,300, noting that while the broader trend remains positive, the short-term structure points towards consolidation, requiring a decisive breakout for further upside.
Previous Session Recap
In the preceding session on Monday, the Sensex had gained 355.90 points, or 0.46%, to settle at 77,269.40. The Nifty 50 also advanced 121.75 points, or 0.51%, closing at 24,119.30.