The Indian Stock Markets on Tuesday ended with losses taking cues from geopolitical crisis, and the announcement of the spike in fuel prices. At close, Sensex was 114.19 points or 0.15% at 75,200.85 while the Nifty was at 23,618.00, down by 31.95 or 0.14%.
At the time of open, markets posted gains with Sensex up by 278.76 points or 0.37% at 75,593.80 while Nifty at 23,696.05 up by 46.10 points or 0.19%. Yesterday, the markets regained the losses as the Sensex gained 1200 points from day’s low and Nifty ended above 23,650 at close. GIFT Nifty was trading at 23,652 in early trade, up 34.50 points or 0.15 percent, indicating a positive opening for domestic equity markets.
As the fuel prices were raised for the second time in a week, the share prices of the oil marketing companies (OMCs) remain in focus. Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited and Indian Oil Corporation rose up to 3 percent.
After the US Department of Justice dropped all criminal charges against Indian billionaire Gautam Adani and his nephew Sagar Adani, the conglomerate’s share price witnessed uptick. Shares of Adani Enterprises, Adani Green, Adani Power, Adani Ports, and Adani Energy, and Adani Total Gas gained up to 3.5% in the early trade.
What experts say?
Vinod Nair, Head of Research, Geojit Investments Limited said, “Domestic equity indices pared early gains to close in the red, despite an initial upswing fueled by optimism surrounding a temporary halt in U.S. military operations against Iran. IT stocks stood as a notable exception, registering robust advances on the back of anticipated tailwinds from an accelerating rupee depreciation and compelling valuations. Meanwhile, mid and small-caps quietly outshone their large-cap peers, drawing renewed buying interest after a meaningful correction.”
“While fourth-quarter earnings continue to underscore the resilience of domestic economic momentum, market focus is increasingly pivoting toward mounting inflationary pressures. Concerns over potential earnings downgrades for Q1FY27 are gaining traction, driven by higher-than-anticipated WPI readings, the gradual pass-through of elevated fuel prices, and persistently firm bond yields.”
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, “Rupee traded weaker by around 10 paise near 96.53, as elevated crude oil prices and continued pressure on capital flows kept the currency under stress. Sustained higher crude prices are increasing concerns over India’s import bill and widening trade deficit, which is keeping sentiment weak for the rupee. Market participants continue to prefer dollar buying and rupee selling as a hedge against ongoing volatility and external sector pressure. The broader trend remains weak, with rupee expected to trade in a range of 96.25–97.00 in the near term.”