By Our Business Correspondent
Domestic equity benchmarks ended Tuesday’s session with modest losses, as a sharp depreciation in the rupee to a record low against the US dollar unsettled investor sentiment. Heightened volatility due to the weekly expiry of Nifty derivatives and escalating geopolitical tensions between the United States and Iran further dampened risk appetite, overshadowing the optimism generated by recent state election outcomes.
The benchmark indices remained under pressure throughout the session, with the Nifty 50 slipping below the psychologically important 24,050 level. Selling was largely concentrated in private banking and consumer durable stocks, while select defensive sectors such as FMCG, automobiles and pharmaceuticals managed to post gains, cushioning the downside to some extent.
The BSE Sensex declined 251.61 points, or 0.33%, to close at 77,017.79, while the Nifty 50 shed 86.50 points, or 0.36%, to settle at 24,032.80. Among the major laggards were ICICI Bank, Bharti Airtel and HDFC Bank, which exerted significant pressure on the indices.
Interestingly, the broader markets displayed relative resilience. The BSE MidCap index edged up 0.15%, and the SmallCap index gained 0.20%, indicating selective buying interest beyond frontline stocks. However, market breadth remained negative overall, with declining shares outnumbering gainers on the BSE.
Volatility indicators offered some relief, as the India VIX declined over 2% to 17.91, suggesting a marginal easing in near-term market uncertainty despite prevailing global risks.
In the currency markets, the rupee continued to remain under pressure, hovering near historic lows and touching an intra-day record of 95.44 against the US dollar. The persistent weakness in the domestic currency reflects ongoing global uncertainties and sustained foreign fund outflows.
Bond markets, however, witnessed mild gains, with the yield on the 10-year benchmark government security easing to around 7.01%, indicating some stability in fixed-income sentiment. Meanwhile, gold prices in the domestic futures market edged higher, reflecting safe-haven demand amid geopolitical concerns.
Global cues remained mixed. While US Dow Jones futures संकेत a positive start for Wall Street, European markets traded with cautious optimism. Asian markets ended on a mixed note, with trading activity subdued due to holidays in key regional economies such as Japan, China and South Korea.
Investor sentiment globally took a hit after Iran launched retaliatory strikes in response to a US operation in the Strait of Hormuz, raising concerns about potential disruptions to global oil supply and regional stability. Although diplomatic signals persist, the fragile geopolitical backdrop continues to weigh on financial markets.
Back home, stock-specific action remained robust amid the ongoing earnings season. Mahindra & Mahindra rallied strongly after reporting impressive quarterly results, while companies like Wockhardt, Tata Technologies and Quess Corp also posted notable gains on improved earnings performance. On the flip side, Voltamp Transformers saw a sharp decline following weak quarterly numbers, highlighting the divergence in corporate earnings.
Primary market activity also remained strong, with the IPO of Onemi Technology Solutions witnessing robust subscription, reflecting sustained retail and institutional interest in new listings.
Overall, markets are expected to remain range-bound in the near term, with currency movements, geopolitical developments and corporate earnings likely to dictate investor sentiment.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to consult certified financial advisors before making any investment decisions.