Indian stocks ended lower on Tuesday as broad-based profit-taking dragged down Sensex and Nifty, offsetting strength in metal and public-sector bank stocks. Consumer and IT shares led the decline, while metal stocks rose on optimism over a potential U.S.-China trade deal and PSU banks advanced after reports the government may raise the foreign institutional investment (FII) ceiling.
The S&P BSE Sensex fell 0.18% to 84,628.16, down 150.68 points, while the NSE Nifty 50 slipped 0.11% to 25,936.20.
On the 30-stock Sensex, shares of Trent, ICICI Bank, Tech Mahindra, Bajaj Finserv, Power Grid, and TCS led the decline, slipping between 0.9% and 1.5%.
Broader markets were largely steady, with the small-cap and mid-cap indices ending flat.
Metal stocks advanced 1.23%, topping sectoral gainers, after U.S. and Chinese officials finalized a trade framework for Presidents Donald Trump and Xi Jinping to review later this week. Tata Steel jumped 2.9% to lead the Nifty, after Motilal Oswal upgraded the stock to “buy” from “neutral,” citing a stronger domestic outlook.
Public-sector banks gained 1.21%, extending Monday’s 2% rise, after a Reuters report said that centre is considering raising the direct foreign investment cap in state-run banks to 49%.
Meanwhile, Federal Reserve policymakers are widely expected to cut rates by 25 basis points on Wednesday, with markets also pricing in another reduction in December.
Expert views
The domestic market remained volatile in negative terrain and ended flat, weighed down by profit booking on monthly expiry and weak global cues but despite this, the Metals sector gained on renewed optimism following China’s announcement to curb steel overcapacity and potential progress over US- China Trade relations, while PSU banks outperformed amid reports of a potential increase in FII holding limits, said Vinod Nair, Head of Research at Geojit Investments.
“Notably, buying interest emerged at lower levels, reflecting underlying investor confidence. Market sentiment is expected to be supported by easing global trade tensions and expectations of an upgrade in domestic corporate earnings, which continue to reinforce resilience," said Nair.
In technical terms, the overall chart setup on the daily timeframe remains intact, with the Nifty trading well above the 21EMA, keeping the bullish bias intact, said Rupak De, Senior Technical Analyst at LKP Securities.
“The RSI is in a bullish crossover and remains in the high momentum zone. In the short term, the index may witness a decent rally as momentum picks up above 26,000. On the higher end, resistance is seen at 26,300, while support is placed at 25,850," said De.
Global Markets
World stocks stalled on Tuesday after a strong rally, even as optimism over easing trade tensions kept risk appetite firm and investors awaited a wave of mega-cap tech earnings.
Gold slipped back below $4,000 an ounce, extending a nearly 10% slide over six sessions as leveraged investors unwound crowded trades.
Europe’s STOXX 600 dipped 0.2% after touching a record high Monday, while major indexes in Frankfurt, Paris, and London were little changed. Spain’s IBEX edged higher to its first record since 2007.
In Asia, Japan’s Nikkei fell 0.6% after a 2.5% surge Monday that pushed its year-to-date gains to almost 27%. MSCI’s Asia-Pacific index outside Japan eased 0.6%, and Chinese blue chips slipped 0.2%, with the Shanghai Composite briefly topping 4,000 before retreating.
U.S. stock futures were steady near record highs.
Rupee vs Dollar
The Indian rupee ended little changed at 88.2650 against the U.S. dollar on Tuesday, as likely intervention by the central bank in both the spot and non-deliverable forward markets helped offset lingering pressure on the currency, traders said. The rupee had earlier slipped to a two-week low of 88.40 in early trade.
Meanwhile, the dollar index, which tracks the greenback against six major peers, eased 0.09% to 98.69.
Crude impact
Oil prices fell 2% on Tuesday, extending their decline for a third straight session as investors weighed the impact of U.S. sanctions on Russia’s two largest oil producers and a potential OPEC+ plan to boost supply.
Brent crude dropped $1.29, or 2%, to $64.33 a barrel, while U.S. West Texas Intermediate slipped $1.20, or 2%, to $60.11.
(With inputs from agencies)
The S&P BSE Sensex fell 0.18% to 84,628.16, down 150.68 points, while the NSE Nifty 50 slipped 0.11% to 25,936.20.
On the 30-stock Sensex, shares of Trent, ICICI Bank, Tech Mahindra, Bajaj Finserv, Power Grid, and TCS led the decline, slipping between 0.9% and 1.5%.
Broader markets were largely steady, with the small-cap and mid-cap indices ending flat.
Metal stocks advanced 1.23%, topping sectoral gainers, after U.S. and Chinese officials finalized a trade framework for Presidents Donald Trump and Xi Jinping to review later this week. Tata Steel jumped 2.9% to lead the Nifty, after Motilal Oswal upgraded the stock to “buy” from “neutral,” citing a stronger domestic outlook.
Public-sector banks gained 1.21%, extending Monday’s 2% rise, after a Reuters report said that centre is considering raising the direct foreign investment cap in state-run banks to 49%.
Meanwhile, Federal Reserve policymakers are widely expected to cut rates by 25 basis points on Wednesday, with markets also pricing in another reduction in December.
Expert views
The domestic market remained volatile in negative terrain and ended flat, weighed down by profit booking on monthly expiry and weak global cues but despite this, the Metals sector gained on renewed optimism following China’s announcement to curb steel overcapacity and potential progress over US- China Trade relations, while PSU banks outperformed amid reports of a potential increase in FII holding limits, said Vinod Nair, Head of Research at Geojit Investments.
“Notably, buying interest emerged at lower levels, reflecting underlying investor confidence. Market sentiment is expected to be supported by easing global trade tensions and expectations of an upgrade in domestic corporate earnings, which continue to reinforce resilience," said Nair.
In technical terms, the overall chart setup on the daily timeframe remains intact, with the Nifty trading well above the 21EMA, keeping the bullish bias intact, said Rupak De, Senior Technical Analyst at LKP Securities.
“The RSI is in a bullish crossover and remains in the high momentum zone. In the short term, the index may witness a decent rally as momentum picks up above 26,000. On the higher end, resistance is seen at 26,300, while support is placed at 25,850," said De.
Global Markets
World stocks stalled on Tuesday after a strong rally, even as optimism over easing trade tensions kept risk appetite firm and investors awaited a wave of mega-cap tech earnings.
Gold slipped back below $4,000 an ounce, extending a nearly 10% slide over six sessions as leveraged investors unwound crowded trades.
Europe’s STOXX 600 dipped 0.2% after touching a record high Monday, while major indexes in Frankfurt, Paris, and London were little changed. Spain’s IBEX edged higher to its first record since 2007.
In Asia, Japan’s Nikkei fell 0.6% after a 2.5% surge Monday that pushed its year-to-date gains to almost 27%. MSCI’s Asia-Pacific index outside Japan eased 0.6%, and Chinese blue chips slipped 0.2%, with the Shanghai Composite briefly topping 4,000 before retreating.
U.S. stock futures were steady near record highs.
Rupee vs Dollar
The Indian rupee ended little changed at 88.2650 against the U.S. dollar on Tuesday, as likely intervention by the central bank in both the spot and non-deliverable forward markets helped offset lingering pressure on the currency, traders said. The rupee had earlier slipped to a two-week low of 88.40 in early trade.
Meanwhile, the dollar index, which tracks the greenback against six major peers, eased 0.09% to 98.69.
Crude impact
Oil prices fell 2% on Tuesday, extending their decline for a third straight session as investors weighed the impact of U.S. sanctions on Russia’s two largest oil producers and a potential OPEC+ plan to boost supply.
Brent crude dropped $1.29, or 2%, to $64.33 a barrel, while U.S. West Texas Intermediate slipped $1.20, or 2%, to $60.11.
(With inputs from agencies)
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