On Monday, equity markets remained under pressure, with the Nifty declining 0.4%, while broader markets outperformed as the Nifty Midcap100 and Nifty Smallcap100 gained. Analysts say Indian equities are expected to trade sideways to mixed amid escalating geopolitical tensions in West Asia, Brent crude oil prices remaining above $88 per barrel, continued weakness in the rupee (Rs 96/$), persistent Foreign Institutional Investor selling and weak global cues. With the Q1 earnings season gathering pace, stock-specific action is likely to dominate.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 135.50 points, or 0.56 per cent, at 24,147.50, signaling that Dalal Street was headed for a negative start on Tuesday.
- Tech View: Overall, analysts say the broader market bias remains cautiously positive, as both Nifty and Bank Nifty continue to hold above their key moving averages despite profit booking. The strong defence of important support levels suggests that investors are adopting a buy-on-dips approach rather than turning aggressively bearish.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 1.3% to settle at 12.98 levels.
S&P 500 ends lower
The S&P 500 finished slightly lower on Monday as investors looked for signs of Middle East de-escalation while awaiting earnings reports from major technology companies later this week.
Asian shares advance
Asian equities advanced after three days of losses as a selloff in chip stocks eased ahead of megacap tech earnings this week.
- S&P 500 futures were little changed as of 9:31 a.m. Tokyo time
- Hang Seng futures fell 0.2%
- Nikkei 225 futures (OSE) rose 1.8%
- Japan’s Topix rose 1.4%
- Australia’s S&P/ASX 200 fell 0.5%
- Euro Stoxx 50 futures fell 0.8%
Oil prices softened on Tuesday, with markets weighing reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis.
Also read | Oil prices dip as mediation efforts offset US-Iran strikes
Dollar rises
The U.S. dollar hovered near a one-week high on Tuesday, with markets torn between conflicting Middle East signals, as hostilities in the region stoked renewed fears over energy supplies while hopes for a ceasefire offered some relief.
Also read | Dollar near one-week high as markets grapple with Gulf tensions
Stocks in F&O ban today
1) Kaynes
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Rupee
The Indian rupee declined to its weakest level in two months on Monday, as oil prices swayed near $90 per barrel amid the Middle East conflict, with markets acutely sensitive to signs of diplomatic efforts to end hostilities.
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