Indian stock markets opened on a weak note on Tuesday, with the GIFT Nifty indicating a negative start as it traded 60.50 points lower at 24,314.50. Meanwhile, Asian markets showed positive momentum, with the MSCI Asia Pacific Index rising 0.3% and South Korean equities advancing 1.9%.
The decline in Indian equities comes as investors shift their focus from the recently concluded Q1FY27 earnings season to global macroeconomic and geopolitical developments. The Nifty ended 78 points lower at 24,287 on Monday, marking its fifth consecutive session of losses, while the Sensex fell for a second straight session.
Oil prices edged higher as Asian markets opened cautiously following the expiration of the US-Iran truce. Tehran's shift to a 'fully offensive' military posture added to geopolitical uncertainty, affecting early gains in equities. In the US, Wall Street slipped as weaker-than-expected economic data, including a decline in retail sales, dampened hopes for an imminent Federal Reserve rate cut.
ICICI Bank has overtaken HDFC Bank to become the most valued stock in mutual fund portfolios in July, ending HDFC Bank's three-year reign at the top. This shift comes amid governance concerns surrounding HDFC Bank.
In global markets, Asian shares gained ground, with South Korean equities leading the charge. In the US, chipmakers saw a rise due to strong sales growth reported by Anthropic, boosting optimism around artificial intelligence, even as the broader market ended lower.
Shares of Airtel, Paytm, SpiceJet, ONGC, and ZEE are expected to remain in focus due to company-specific developments.
Background
The Indian stock market has been experiencing a downturn as investors adjust their strategies in response to global economic indicators and geopolitical tensions. The recent expiration of the US-Iran truce has added to the uncertainty, influencing oil prices and market sentiment.
As investors await the US Federal Reserve's July meeting minutes for insights into the global interest-rate outlook, the ongoing geopolitical tensions and economic data will continue to influence market movements. Analysts expect Indian markets to remain range-bound in the near term.
