Mumbai: Indian stock markets started Tuesday on a downward note, tracking weak cues from Asian markets, with selling pressure hitting auto, IT, and pharma stocks in early trading.
As of 9:28 AM, the Sensex was down 186.35 points, or 0.23%, at 81,609.80, while the Nifty fell 68.20 points, or 0.27%, to 24,878.30. The Nifty Bank index slipped marginally by 30.10 points, or 0.05%, to 55,914.80. The Nifty Midcap 100 index dipped 36.40 points, or 0.06%, to 58,732.10, and the Nifty Smallcap 100 index declined 66.30 points, or 0.36%, to 18,482.90.
Market analysts pointed to US President Donald Trump’s recent remarks on Iran as a source of investor unease about geopolitical developments. Despite heightened tensions in the Iran-Israel conflict, markets have shown resilience. Experts noted that the CBOE US volatility index’s decline suggests limited risk of a sharp market correction unless the conflict escalates significantly.
“Retail investors are driving market stability, seizing every dip as a buying opportunity, undeterred by valuations,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. Among Sensex stocks, Axis Bank, Kotak Mahindra Bank, NTPC, PowerGrid, Adani Ports, ICICI Bank, SBI, TCS, and HCL Tech led the gains, while Tata Motors, Sun Pharma, IndusInd Bank, UltraTech Cement, Titan, and Bajaj Finance were the top losers.
On the institutional side, foreign institutional investors (FIIs) offloaded equities worth Rs 2,287.69 crore on June 16, while domestic institutional investors (DIIs) bought equities worth Rs 5,607.64 crore. In Asia, markets in Bangkok, Jakarta, Japan, and Seoul traded higher, while Hong Kong and China saw declines. In the US, the previous session saw the Dow Jones climb 317.30 points, or 0.75%, to 42,515.09, the S&P 500 rise 56.14 points, or 0.94%, to 6,033.11, and the Nasdaq gain 294.39 points, or 1.52%, to 19,701.21.
The US Federal Reserve’s two-day meeting, starting Tuesday and ending Wednesday, is expected to keep interest rates unchanged. “Investors will closely watch Chair Jerome Powell’s comments on future rate paths, especially with signs of cooling inflation and sustained economic strength,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.