Stock Market Live Updates: Benchmark indices Sensex and Nifty50 are expected to see a muted start on Wednesday, tracking weak global cues and rising crude oil prices amid the ongoing US-Iran impasse. GIFT Nifty indicates a subdued opening as markets await clarity on US-Iran talks and the US Federal Reserve's likely direction on rate cuts.
Experts believe market participants will remain highly responsive to developments in the Middle East conflict. High crude oil prices, a weakening rupee, and continued foreign institutional selling are weighing on overall sentiment. Uncertainty persists as ceasefire efforts remain delicate, while talks between the US and Iran continue to face hurdles over sanctions, shipping access, and the Strait of Hormuz.
Rupee Weakens Sharply
The rupee weakened sharply on Tuesday, losing 53 paise to settle at 94.68 against the US dollar. The decline was driven by persistently high crude oil prices, continued foreign fund outflows, and heightened geopolitical tensions. Currency market participants noted that the rupee has seen a significant correction, largely reflecting concerns over a potential widening in the current account deficit as well as fluctuations in capital flows. Sustained selling by foreign investors has added further pressure on the domestic currency. So far this year, foreign institutional investors have withdrawn more than USD 19 billion from Indian equities.
Nifty Outlook by Bajaj Broking
The index traded with high volatility on the monthly expiry session and formed a high wave candlestick pattern with a long upper shadow, signaling consolidation around the 20-day EMA. Nifty on Tuesday reacted lower from near Friday's high (24,200) and closed around the 24,000 levels. The index is witnessing consolidation in the broad range of 23,600-24,400 amid stock-specific action as we progress through the quarterly earnings season.
Within the consolidation, a move above Friday's high of 24,206 will open further upside towards the upper band of the range placed around 24,400 levels. On the lower side, a breach below last week's low of 23,813 will open downside towards the 23,600 levels. Short-term support is positioned around the 23,600-23,500 range, being the confluence of the recent major low and 38.2% retracement of the last three weeks' pullback (22,183-24,601).
Bank Nifty Outlook by Bajaj Broking
The Bank Nifty formed a sizable bearish candlestick pattern with a lower high and a lower low, signaling continuation of the corrective decline for the fifth session. The index generated a breakdown below last week's low, signaling corrective bias and extension of the decline towards 24,500-24,000 levels. Overall, the Bank Nifty is expected to extend consolidation in the broad range of 54,500-57,500 amid stock-specific action as we progress through the quarterly earnings session of banking stocks.
Within the consolidation, only a move above 56,475 will open further upside towards the 57,000 and 57,500 levels in the coming sessions. From a short-term perspective, support is placed in the range of 54,500-54,000 zone, being the confluence of the recent low and 38.2% retracement of the last three weeks' pullback (49,955-57,456).
SBI Securities View on Nifty and Bank Nifty
Nifty View: Going ahead, the immediate support for Nifty is placed in the 23,850-23,800 zone. Any sustainable move below this zone could result in Nifty extending its weakness towards 23,650, followed by 23,500 in the short term. On the upside, the zone of 24,200-24,250 is likely to act as an immediate resistance.
Bank Nifty View: Bank Nifty underperformed significantly compared to the benchmark. The index opened weak, witnessed a brief bout of buying, but strong selling at higher levels pushed it lower through the day. It eventually closed at 55,400, down 1.54%. Importantly, it has now slipped below the previous two-day low zone of 55,950-55,750 as well as its 20-day EMA on the daily chart, indicating short-term weakness. Going ahead, the immediate support for Bank Nifty is placed in the 54,900-54,800 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54,400, followed by 54,000 in the short term. On the upside, the zone of 55,900-56,000 is likely to act as an immediate resistance.
Sensex, Nifty Round-Up from Tuesday
Benchmark equity indices BSE Sensex and Nifty 50 ended lower on Tuesday, pressured by a steep rise in crude oil prices and continued foreign investor selling amid lingering geopolitical tensions. The cautious mood in the market weighed heavily on overall investor sentiment. Weakness in banking, financial, and automobile shares further dragged the benchmarks down.
The 30-share Sensex fell 416.72 points, or 0.54%, to close at 76,886.91. During intraday trade, it had dropped as much as 562.57 points, or 0.72%, to touch 76,741.06. Market breadth on the BSE remained negative, with 2,257 stocks ending lower, while 1,998 advanced. Another 172 shares closed unchanged. The broader Nifty 50 declined by 97 points, or 0.40%, to settle at 23,995.70.
Ajit Mishra, SVP, Research at Religare Broking, said trading sentiment remained dominated by ongoing geopolitical concerns, particularly surrounding negotiations between the US and Iran. These uncertainties kept crude oil prices elevated, creating pressure on the markets. He added that banking stocks also faced selling following regulatory developments related to provisioning requirements, which further limited any upward momentum. However, gains in select heavyweight stocks, commodity-linked counters, and company-specific earnings-driven buying helped contain the losses.
Among Sensex constituents, major laggards included Axis Bank, HCL Technologies, InterGlobe Aviation, Maruti Suzuki, State Bank of India, and ICICI Bank. On the gaining side, Reliance Industries, Bharti Airtel, Tech Mahindra, and Sun Pharmaceutical Industries posted advances. Among broader market indices, the BSE SmallCap Select index rose 0.42%, while the BSE MidCap Select index slipped 0.27%.
Foreign portfolio investors were net sellers on Tuesday, offloading shares worth Rs 2,104 crore. Domestic institutional investors, on the other hand, provided support by purchasing equities worth Rs 1,712 crore. Asian equities started the day on a softer note after a technology-led selloff in the US. Investors remain cautious over whether massive spending on artificial intelligence will generate adequate returns, particularly ahead of earnings from large-cap technology firms. Wall Street ended lower on Tuesday, pulling back from record closing levels. Renewed concerns about the sustainability of the artificial intelligence-driven rally weighed heavily on technology shares, especially with quarterly earnings from several major tech companies due.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of the publication.
