Indian markets demonstrated resilience on Monday despite challenging global cues, reflecting continued support from domestic fundamentals. Analysts say equities are expected to maintain a gradual uptrend, with the Q1FY27 earnings season likely to be the key catalyst for sectoral and stock-specific action limiting downside. Volatility, however, is likely to remain elevated amid evolving geopolitical developments in West Asia.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 165.5 points, or 0.68 per cent, at 24,052, signaling that Dalal Street was headed for a negative start on Tuesday.
- Tech View: A decisive move above 24,200 could trigger fresh short-term momentum, potentially propelling the index towards 24,500 and higher. On the downside, a decisive breach below 24,000 could weaken the bullish sentiment and shift the near-term bias in favour of the bears
- India VIX: India VIX, which is a measure of the fear in the markets, rose 8% to settle at 13.28 levels.
Asian shares mixed
Asian shares were mixed with MSCI’s gauge of regional equities fluctuating between small gains and losses. South Korean stocks were volatile, rising as much as 0.6% and dropping up to 2.8%. The chip sector remained in focus after SK Hynix Inc.’s American depositary shares fell 9.3% as an AI-fueled stock rout in South Korea spilled over into the US market. US equity-index futures also retreated.
- S&P 500 futures fell 0.2% as of 9:45 a.m. Tokyo time
- Hang Seng futures fell 0.2%
- Nikkei 225 futures (OSE) fell 0.7%
- Japan’s Topix fell 0.2%
- Australia’s S&P/ASX 200 fell 0.6%
- Euro Stoxx 50 futures fell 0.8%
US stocks end lower
Tech shares pulled U.S. stocks lower on Monday after President Donald Trump announced that he would reinstate a blockade on Iranian ports, marking the latest escalation in U.S.-Iran hostilities. The move sent oil prices sharply higher and dampened overall risk appetite.
Oil climbs
Oil prices rose 2% on Tuesday to their highest in four weeks, as the U.S. reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows.
Dollar steady
The dollar steadied on Tuesday ahead of U.S. inflation data, with Middle East tensions lifting oil prices while the yen held a soft tone amid caution over possible intervention and after policymakers' comments on state pension fund allocations.
Gold slides
Gold slid to a two-week low on Tuesday as the U.S.-Iran conflict in the Gulf sent oil prices soaring and fuelled inflation fears, with hawkish remarks from Federal Reserve Governor Christopher Waller further reinforcing bets on higher U.S. interest rates.
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 rupee depreciated 30 paise to close at 95.68 against the US dollar on Monday, weighed down by elevated crude oil prices after Iran declared the Strait of Hormuz closed.
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