Benchmarks opened higher on Tuesday morning but pared early gains amid monthly derivatives expiry and continuing uncertainty over US-Iran negotiations. The BSE Sensex, which closed at 76,728.37 in the previous session, opened at 77,005.51 and was trading at 76,646.51, down 81.86 points or 0.11 per cent, as of 09.22. The NSE Nifty 50, which had a previous close of 23,946.25, opened at 24,032.05 and was at 23,910.40, down 35.85 points or 0.15 per cent, as of 09.23 am.
Among the top Nifty gainers, Maruti Suzuki rose 1.45 per cent to ₹13,607.00, Axis Bank gained 1.19 per cent to ₹1,373.00, Nestle India added 1.03 per cent to ₹1,401.60, Adani Ports climbed 0.79 per cent to ₹1,790.20, and Sun Pharma advanced 0.76 per cent to ₹1,889.00.
On the losing side, Eicher Motors fell sharply by 4.87 per cent to ₹7,064.00, Tata Consumer Products dropped 3.54 per cent to ₹1,073.40, Infosys declined 1.79 per cent to ₹1,018.10, Dr Reddy’s Laboratories was down 1.21 per cent to ₹1,359.00, and HDFC Life Insurance slipped 1.05 per cent to ₹577.10.
The previous session had seen profit booking at higher levels, with the Pharma, Healthcare and Metal indices gaining nearly 1 per cent, while Auto was the top sectoral laggard, falling 1.65 per cent.
Crude oil prices remained elevated, with Brent trading in the $70-71 per barrel range following military exchanges between the United States and Iran over the weekend. Market participants are awaiting the next round of negotiations in Doha, Qatar.
Ponmudi R, CEO of Enrich Money, said any disruption to shipping through the Strait of Hormuz “could reignite concerns over energy supplies, inflation and global risk sentiment, making developments in the region the key market driver in the sessions ahead.”
Domestically, concerns persisted over India’s summer crop sowing trailing last year’s pace due to a delayed monsoon onset, raising questions over agricultural output and rural demand.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that with Brent crude, US bond yields and the rupee stabilising, “there are no major near-term triggers for the market” and that Q1 results would influence moves going into July. He added that banking and financial services “will continue to perform well” given strong credit growth and healthy net interest margins, while healthcare remains “a strong defensive play” amid poor monsoon conditions.
Shrikant Chouhan, Head Equity Research at Kotak Securities, said 24,000 on the Nifty and 76,800 on the Sensex “may act as the immediate reference level for traders,” with a decisive break below dragging the market towards the 23,800-23,900 zone.
Gaurav Udani, Founder of Thincredblu Securities, said with monthly expiry underway, “traders should be prepared for heightened volatility and sharp intraday swings, especially around key support and resistance levels.”
Vikram Kasat, Head Advisory at PL Capital, noted that the US Supreme Court on Monday rejected Donald Trump’s bid to remove a sitting Federal Reserve member, a decision that “didn’t move markets much,” while the Dow Jones Industrial Average closed above 52,000 helped by Alphabet’s entry into the index.
Other events on the day’s calendar include the Nifty monthly expiry, continuing US-Iran talks in Qatar, fund-raising activity at Apar Industries and Shanti Gold, annual general meetings at Hindustan Unilever, ICICI Prudential Life Insurance, Indian Hotels, Urban Company, Voltas and SRF, and US job openings data due later in the day.