Indian benchmark indices opened in the red on Tuesday, tracking weak cues from Asian markets, with early trade witnessing selling pressure in auto, IT, and pharma sectors.
At around 9:28 a.m., the BSE Sensex was down 186.35 points or 0.23 per cent at 81,609.80, while the NSE Nifty fell 68.20 points or 0.27 per cent to trade at 24,878.30.
The Nifty Bank index slipped 30.10 points or 0.05 per cent to 55,914.80. The Nifty Midcap 100 index was trading lower by 36.40 points or 0.06 per cent at 58,732.10, while the Nifty Smallcap 100 declined 66.30 points or 0.36 per cent to 18,482.90.
Market sentiment remained cautious as investors reacted to geopolitical tensions and global cues. Analysts noted that former US President Donald Trump’s latest comments on Iran have raised concerns about the broader geopolitical outlook.
Despite escalating tensions between Iran and Israel, global markets have shown resilience. The decline in the US volatility index (CBOE VIX) suggests that sharp corrections are unlikely unless the conflict escalates further, market experts said.
“The key reason for the market’s resilience is the participation of retail investors, who continue to see every market dip as a buying opportunity. Elevated valuations are not discouraging retail flows,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among the Sensex constituents, Axis Bank, Kotak Mahindra Bank, NTPC, PowerGrid, Adani Ports, ICICI Bank, SBI, TCS, and HCL Tech were the top gainers in early trade. On the flip side, Tata Motors, Sun Pharma, IndusInd Bank, UltraTech Cement, Titan, and Bajaj Finance were among the top losers.
On the institutional side, foreign institutional investors (FIIs) offloaded equities worth ₹2,287.69 crore on June 16, while domestic institutional investors (DIIs) remained net buyers with purchases worth ₹5,607.64 crore.
In Asian markets, indices in Bangkok, Jakarta, Japan, and Seoul were trading in the green, while those in Hong Kong and China witnessed losses.
In the previous trading session, US markets ended higher. The Dow Jones closed at 42,515.09, up 317.30 points or 0.75 per cent. The S&P 500 gained 56.14 points or 0.94 per cent to end at 6,033.11, and the Nasdaq rose 294.39 points or 1.52 per cent to 19,701.21.
Attention now turns to the US Federal Reserve, which begins its two-day policy meeting on Tuesday. The central bank is widely expected to keep interest rates unchanged.
“Comments from Fed Chair Jerome Powell will be closely watched, especially in the context of easing inflation and continued economic strength,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
— IANS