Indian stocks are expected to open on a flat to negative note on Tuesday amid mixed global cues. With lack of any triggers, markets are likely to be anchored by global cues and liquidity, said analysts. With the results behind, the focus is on geopolitical tension and commodities, they added.
Gift Nifty at 24,315 signals a gap-down opening of about 60-75 points for Nifty.
“With no meaningful progress in resolving the US–Iran conflict and US President Donald Trump ruling out an extension of the 60-day temporary ceasefire arrangement, concerns over energy supplies remain firmly in focus. WTI crude is trading around the $84-per-barrel mark, keeping inflationary pressures and energy-related risks at the forefront for oil-importing economies such as India,” said Ponmudi R, CEO of Enrich Money.
Rating agency ICRA projects the year-on-year (y-o-y) GDP growth to have eased to a four-quarter low of 7.0 per cent in Q1 2026-27 from 7.8 per cent in Q4 2025-26. The slowdown is expected to be caused by the services sector (likely to ease to +7.9 per cent in Q1 2026-27 from +9.9 per cent in Q4 2025-26), even as the industrial (+7.7 per cent in Q1 2026-27 against +7.3 per cent in Q4 2025-26) and agricultural (likely to rise to +4.0 per cent in Q1 2026-27 from +3.6 per cent in Q4 2025-26) growth is expected to improve between these quarters.
The overall expansion in gross value added (GVA) is likely to print at 7.2 per cent in Q1 2026-27 (+7.9 per cent in Q4 2025-26), about 0.2 percentage points higher than the expected GDP growth, as the latter may be weighed down by compression in net indirect taxes on products, the rating agency added.
Global cues remain mixed. Wall Street ended lower overnight, while Asian markets are trading on a divergent note. Japan’s Nikkei 225 is down around 0.4 per cent in early deals on Tuesday.
Franklin Templeton India Mutual Fund has released an Equity Market Snapshot detailing the development in the Indian equity market and MF industry. As per the press note, the geopolitical backdrop remains fluid, with the Iran conflict continuing to influence crude oil prices and near-term market sentiment. Although intermittent signs of de-escalation have provided some relief, crude prices have remained volatile, renewing some concerns for India. Any durable resolution to the conflict could lead to a meaningful correction in oil prices and help ease the associated macroeconomic pressures.