Mumbai, Maharashtra: Indian stock markets closed largely unchanged on Tuesday, as rising crude oil prices and anticipation surrounding the US Federal Reserve’s policy decision kept investors on edge.
The Nifty 50 index saw a marginal dip of 3.45 points, settling at 22,749.75, while the BSE Sensex declined by 8.08 points to close at 73,598.67.
According to Vinod Nair, Head of Research at Geojit Investments, the market experienced a volatile session. High crude prices, with Brent nearing USD 116 per barrel, and the looming US Fed policy decision overshadowed positive global cues. Despite profit booking in IT and private banking sectors, pharma, auto, PSU banks, and realty sectors registered gains, indicating a selective domestic risk appetite. Healthy Q2 earnings and strong domestic investment flows provided some resilience against persistent foreign selling.
However, Nair cautioned that Brent crude above USD 115 and a weakening Rupee (INR) pose risks to inflation, corporate margins, and financing conditions. Rajeev Sharan, Head of Research at Brickwork Ratings, highlighted that the Rupee slipped past 95, trading near 95.30, primarily due to external factors. He noted that the Reserve Bank of India (RBI) still has room to manage an orderly market, despite the global pressures from Gulf supply shocks and Washington’s rate decisions. The market’s future direction will depend on corporate earnings, crude oil trends, the evolving West Asia crisis, and the Fed’s policy signals.