The Indian stock market extended losses on Tuesday, with Sensex and Nifty dropping up to 0.3% despite a fall in oil prices following reports of mediation efforts between the US and Iran.
Sensex dropped nearly 238 points to end the session at 77,470, while Nifty 50 dropped around 51 points to close at 24,188 on Tuesday. Broader markets, however, edged higher, with Nifty Midcap 100 and Nifty Smallcap 100 rising up to 0.6% to close in the green.
Here's how analysts read the market pulse
Despite geopolitical challenges, midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates, Vinod Nair, Head of Research at Geojit Investments, highlighted. He noted that while this segment’s elevated valuations compared to large caps warrant caution, underlying business conditions are expected to remain healthy at least through H1FY27.
“However, sustaining this momentum will require the ongoing spike in input costs to normalize as demand growth may tend to become flattish in H2 FY27. At present, the broader market is trading in a mixed range, reflecting large caps' underperformance driven by moderating inflows amid rising geopolitical risks and higher crude oil prices,” according to the analyst.
US stocks
Wall Street's main indexes rose on Tuesday, as a recovery in semiconductor shares helped shift the focus from concerns over fresh developments in the Middle East, while investors awaited major tech earnings for clues on the future of the AI trade.
U.S. forces launched fresh strikes in Iran's south and west in retaliation for the deaths of American soldiers. A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire.
Brent crude futures jumped over $90 a barrel following the strikes.
European markets
Gains in tech stocks kept Europe's indices afloat. Britain's FTSE 100 rose 0.43% to 10,570.50. France's CAC 40 gained 0.11% to 8,349.10, Germany's DAX advanced 0.49% to 24,969.31, while the pan-European STOXX 600 added 0.45% to 642.51.
Tech view
On the weekly expiry session, Nifty traded in a range with a corrective bias and closed around the 24,200 level, Bajaj Broking Research noted. The index formed a high wave candle with a small real body and shadows in either direction, signaling consolidation for the second session amid stock specific action.
Going ahead, the index is expected to extend the recent consolidation and trade in the broad range of 23,800-24,350 in the coming sessions. Within the consolidation phase, the brokerage sees 24,000-24,100 as the immediate support. "We expect the index to hold above the same and head towards the upper band of the range and last week high placed at 24,370 levels," it added.
"On the higher side, only a breakout above 24,370 will open further upside towards the April high of 24,600. Short term support is placed at 24,000-23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA. The index holding above the support area will keep the overall bias positive," Bajaj Broking Research said.
Most active stocks in terms of turnover
HDFC Bank (Rs 3,234 crore), Karur Vysya Bank (Rs 2,791 crore), ICICI Bank (Rs 2,675 crore), Axis Bank (Rs 1,887 crore), Himadri Speciality (Rs 1,696 crore), RIL (Rs 1,670 crore) and Kalyan Jewellers (Rs 1,638 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 24.89 crore), JP Power (Traded shares: 21.79 crore), Karur Vysya Bank (Traded shares: 8.39 crore), Yes Bank (Traded shares: 7.68 crore), NHPC (Traded shares: 5.83 crore), HDFC Bank (Traded shares: 4.22 crore) and Canara HSBC Life (Traded shares: 4.11 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Karur Vysya Bank, M&M Financial, Gujarat Fluorochemicals, Gabriel India, Data Patterns (India), TVS Motor Company and JP Power were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Karur Vysya Bank, Gujarat Fluorochemicals, Gabriel India, Manappuram Finance, Himadri Speciality, Canara HSBC Life and Ajanta Pharma.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were ABSL AMC, Aegis Logistics, Transformers & Rectifiers, Gallantt Metal, Premier Energies, Paytm and Waaree Energies.
52-week low
Among the ones which hit their 52-week lows on NSE included Tata Elxsi.
Sentiment meter favours bulls
Out of the 3,436 stocks that traded on the NSE on July 21, Tuesday, 1,812 stocks witnessed advances, 1,505 saw declines while 119 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
