Benchmark indices ended marginally higher on Tuesday, snapping a three-session losing streak amid heightened volatility driven by elevated crude oil prices, persistent geopolitical tensions in West Asia and continued foreign fund outflows, while the rupee weakened to fresh record lows against the US dollar.
“After two consecutive heavy selloff sessions, Indian equity markets witnessed a relatively stable session today… although underlying sentiment continues to remain cautious amid persistent global and domestic macro concerns,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
The Sensex closed 49.74 points, or 0.07 per cent, higher at 74,608.98, while the Nifty 50 gained 33.05 points, or 0.14 per cent, to settle at 23,412.60 after a volatile trading session. The Nifty had slipped to an intraday low of 23,262.55 before recovering to touch 23,582.95, though profit booking in the latter half of the session trimmed gains.
Broader markets outperformed the frontline indices, with the Nifty Midcap 100 index rising 0.77 per cent and the Nifty Smallcap 100 index advancing 0.31 per cent, indicating selective buying interest after recent sharp corrections.
Metal, Oil & Gas, Consumer Durables and defence-related counters led gains during the session, while IT and auto stocks remained under pressure. Analysts said the metal pack benefited from supply disruptions linked to the ongoing Middle East tensions, higher global metal prices and the government’s decision to raise customs duty on precious metals to 15 per cent from 6 per cent.
The tariff hike triggered a sharp repricing in domestic bullion markets, with silver surging over 6 per cent and gold rising nearly 5.6 per cent amid rising safe-haven demand and concerns over imported inflation and currency depreciation.
Meanwhile, the rupee remained under pressure, with USD/INR touching the ₹95.8 mark as elevated crude oil prices and disruptions around the Strait of Hormuz kept concerns around India’s current account deficit and imported inflation elevated. Brent crude continued to hold above the $100 per barrel level, while domestic crude futures traded above ₹9,700.
Market participants also tracked the fragile US-Iran ceasefire, which failed to meaningfully cool energy markets as supply concerns persisted due to continued disruptions around key trade routes.
IT stocks extended losses, with analysts citing growing concerns around the long-term outlook for traditional outsourcing-led business models amid rising adoption of AI-native enterprise deployment models. Persistent FII selling and weaker global tech spending trends also weighed on frontline technology counters such as Infosys, TCS and Wipro.
Volatility remained elevated, with India VIX closing near 19.42, reflecting continued uncertainty in the market. Analysts said investors are likely to closely monitor developments in the Middle East, crude oil prices and the upcoming Trump-Xi meeting for further direction. Any prolonged disruption in energy supplies or deterioration in geopolitical conditions could keep markets volatile in the near term, while stability in crude and currency markets may help support a gradual recovery.