Indian markets showed resilience on Monday despite challenging global cues, reflecting continued support from domestic fundamentals. Analysts say the stock is expected to maintain a gradual uptrend, with the first-quarter fiscal 2027 earnings season likely to be a key catalyst for industry-specific and downside-limiting actions. However, volatility is likely to remain elevated amid evolving geopolitical developments in West Asia.
STATE OF MARKETS
GIFT Nifty (formerly SGX Nifty) signals negative start
The GIFT Nifty on NSE IX fell 165.5 points or 0.68 percent to 24,052, signaling that Dalal Street is heading for a negative start on Tuesday.
- Technical view: A decisive move above 24,200 could spark fresh near-term momentum, potentially pushing the index towards 24,500 and above. On the other hand, a decisive break below 24,000 could weaken bullish sentiment and shift the near-term bias in favor of the bears.
- India VIX: India’s VIX index, which gauges fear in markets, rose 8% to settle at 13.28.
Asian stocks mixed
Asian shares were mixed in with MSCI’s regional stock performance fluctuating between small gains and losses. South Korean shares were volatile, rising 0.6% and falling to 2.8%. The chip sector remained in focus after SK Hynix Inc.’s American Depositary Shares. fell 9.3% as an artificial intelligence-driven stock slide in South Korea spilled over into the U.S. market. US stock index futures also fell.
- 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 stock indices finished declining
Technology stocks led U.S. stocks lower on Monday after President Donald Trump announced he would reinstate a blockade of Iranian ports, marking the latest escalation in hostilities between the U.S. and Iran. The move sent oil prices soaring and reduced overall risk appetite.
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Oil is rising
Oil prices rose 2% on Tuesday to their highest level in four weeks as the US renewed its naval blockade of Iran and both countries stepped up attacks in the Strait of Hormuz, adding to uncertainty over energy flows.
The dollar is stable
The dollar stabilized on Tuesday ahead of US inflation data. Tensions in the Middle East lifted oil prices, while the yen maintained a dovish tone amid caution over possible intervention and following comments from politicians over government pension fund allocations.Golden slippers
Gold fell to a two-week low on Tuesday as the US-Iran conflict in the Persian Gulf sent oil prices soaring and fueled inflation fears, while hawkish remarks from Federal Reserve Chairman Christopher Waller further fueled bets that US interest rates will rise.
Stocks banned by F&O today
1) Keynes
Prohibited securities in the F&O segment include companies whose securities exceed 95% of the market-wide position limit.
Rupee
On Monday, the rupee depreciated by 30 paise to close at 95.68 against the US dollar due to higher crude oil prices after Iran announced the closure of the Strait of Hormuz.
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