Fresh threats of attacks on Iran continue to weigh on global market sentiment. One or two ships are reportedly coming under attack daily near the Strait of Hormuz, although oil shipments through the region have picked up. Houthi attacks on Saudi Arabia are continuing, while the intensity of attacks in Ukraine has eased.
Crude oil prices, which declined on Tuesday, rebounded on Wednesday morning, pushing Brent crude above $107 a barrel.
Indian equities, which surged in the previous session on expectations of tax relief, are likely to begin Wednesday's trade on a weak note. The rupee, which has strengthened for two consecutive sessions, may extend its gains.
GIFT Nifty closed at 22,765 on Tuesday night in derivatives trading at GIFT City. On Wednesday morning, it fluctuated between 22,736 and 22,779, indicating a possible negative opening for Indian equities.
India's Wholesale Price Index (WPI) data for September will be released on Wednesday. The index rose 9.92% in August, while economists expect the increase to reach 10.60% in September. India's September export and import figures are scheduled for release on Thursday.
The US retail inflation data for September will also be released on Wednesday. Analysts expect inflation to have risen to 3.7% from 3.4%.
US stocks closed marginally lower on Tuesday as weaker-than-expected results from major banks and a sharp decline in South Korean semiconductor stocks weighed on market sentiment.
JPMorgan Chase reported third-quarter revenue and profit below market expectations but raised its net interest income outlook. Wells Fargo posted better-than-expected profit, although revenue fell short of estimates. Goldman Sachs reported revenue above expectations.
Shares of all three banks declined. Memory chip manufacturers also came under selling pressure.
US market closing levels, October 13:
Dow Jones Industrial Average: 51,670.10, down 180.45 points (0.35%).
S&P 500: 7,805.45, down 1.79 points (0.02%).
Nasdaq Composite: 27,204.38, down 41.52 points (0.15%).
US stock futures were trading marginally higher on Wednesday morning.
Dow Jones futures: Up 0.02%.
S&P 500 futures: Up 5 points (0.06%).
Nasdaq futures: Up 27 points (0.09%).
Indian American Depositary Receipts (ADRs) recorded gains during regular trading in New York on Tuesday.
HDFC Bank's ADR rose 0.80% during regular trading and gained another 0.10% in extended trading to close at $22.78.
ICICI Bank advanced 1.75% during the regular session and remained unchanged in extended trading at $28.54.
Infosys surged 5.26% during regular trading and gained another 0.18% after hours to close at $11.42.
Wipro jumped 5.88% during the regular session but slipped 0.03% in extended trading to $1.7994.
European equity markets closed lower on Tuesday, with semiconductor companies witnessing sharp declines.
Shares of luxury goods companies also came under pressure after LVMH reported weaker third-quarter sales.
Asian equity markets presented a mixed picture on Wednesday morning, with several major indices trading lower.
South Korea's Kospi, which had plunged 6% on Tuesday, rebounded 2% in early trading before giving up about half its gains.
Japan's Nikkei: Up 0.50%.
Australia's benchmark index: Down 0.85%.
Hong Kong's Hang Seng: Down 0.25%.
Shanghai Composite: Down 0.30%.
Taiwan's benchmark index: Up 1%.
Indian equities surged on Tuesday after investors interpreted remarks by Finance Minister Nirmala Sitharaman as a possible indication of relief in capital gains taxation.
The benchmark indices gained more than 1.5%, with the Sensex reclaiming the 73,000 mark and the Nifty moving above 22,700. However, market participants remain uncertain whether the rally can be sustained.
Sitharaman had said that the government was carefully listening to arguments concerning long-term capital gains (LTCG) tax and securities transaction tax (STT).
The minister did not indicate that the government had decided to reduce either tax. However, investors interpreted her remarks as a sign that changes could be under consideration.
There has been growing debate over whether India's taxation structure is discouraging foreign portfolio investment. With foreign investors continuing to withdraw money from Indian equities, expectations of possible tax relief have strengthened.
Sitharaman's remarks added to this optimism, although no subsequent announcement or clarification has confirmed that tax reductions are being considered.
The finance minister also said the Reserve Bank of India would continue taking necessary measures to support the rupee. The Indian currency strengthened for the second consecutive day on Tuesday, with the dollar losing ₹1.45 against the rupee over two sessions.
The proposed introduction of merchant discount rate (MDR) charges on UPI transactions has reportedly been postponed. The charges, earlier expected to take effect on Thursday, have been deferred until after Diwali. There are indications that implementation could be delayed until January. Small traders have been protesting against the proposal.
Almost all sectoral indices ended higher on Tuesday, with pharmaceuticals being the only sector to register a marginal decline.
Information technology stocks led the rally following stronger-than-expected quarterly results from HCL Technologies.
HCL Technologies: Up 8.42%.
Tata Consultancy Services: Up 6.79%.
Infosys and Wipro: Both gained more than 4%.
Market breadth remained positive. On the BSE, 2,415 stocks advanced while 1,957 declined. On the NSE, 2,102 stocks gained and 1,404 ended lower.
Foreign portfolio investors continued to sell Indian equities, recording net sales of ₹1,305.13 crore in the cash market.
Domestic institutional investors, including mutual funds, made net purchases of ₹2,439.24 crore.
Indian benchmark indices posted strong gains on Tuesday, supported by buying across most sectors.
Closing levels (October 13):
Sensex: 73,033.78, up 1,109.10 points (1.54%).
Nifty 50: 22,721.95, up 358.60 points (1.60%).
Bank Nifty: 55,481.05, up 563.05 points (1.03%).
Nifty Midcap 100: 59,459.20, up 624.65 points (1.06%).
Nifty Smallcap 100: 19,447.40, up 21.60 points (0.11%).
Tata Elxsi: The design and technology services company reported largely flat second-quarter results. Revenue increased 3.4% sequentially, while net profit declined marginally. Operating profit rose 7.2%.
Anand Rathi Share and Stock Brokers: The company reported a 20.1% increase in second-quarter revenue, while net profit surged 48.4%.
Adani Enterprises: The company has signed a memorandum of understanding with US-based engineering and manufacturing firm Jabil Inc. to establish a 50:50 joint venture.
The proposed venture plans to set up a manufacturing facility in India to produce servers, storage equipment, AI racks, networking devices, power distribution units, transformers and cooling systems for data centres.
The agreement comes as the Adani Group plans to develop large-scale data centre infrastructure.
Transformers and Rectifiers: The company reported a 60.7% increase in second-quarter revenue, while net profit more than doubled. Its profit margin improved from 11.2% to 17.4%.
Polycab India: The National Company Law Tribunal has granted a stay in an insolvency petition against the company.
Gold prices continued to fluctuate without a clear direction. After declining on Monday, the precious metal recovered to $4,200 an ounce during Tuesday's trading but eventually closed marginally lower.
International gold prices settled at $4,162.10 an ounce on Tuesday, down $10.70 or 0.26%. On Wednesday morning, gold slipped further to $4,158.
In Kerala, the price of 22-carat gold declined by ₹280 per sovereign on Tuesday to ₹1,09,480.
Silver also declined nearly 2% on Tuesday, closing at $59.40 an ounce. It slipped further to $59.20 on Wednesday morning.
Other precious metal prices
Platinum: $1,649 an ounce.
Palladium: $1,106 an ounce.
Rhodium: $8,850 an ounce.
Rubber prices continued to strengthen in Kerala. The Bangkok rubber market remained closed on Tuesday due to a holiday.
In Kerala, the price of RSS-4 grade rubber rose to ₹28,550 per quintal on Tuesday.
Major industrial metal prices declined on Tuesday.
Copper slipped 0.54% to $14,741 a tonne, while aluminium fell 0.63% to $3,037.92 a tonne. Zinc, lead and tin registered gains, while nickel declined.
Agricultural commodities recorded gains in international markets.
Cocoa: Rose 2.22% to $5,802 a tonne.
Arabica coffee: Gained 0.89% to $2.932 a pound.
Palm oil: Advanced 0.97% to 4,682 Malaysian ringgit a tonne.
The US dollar index declined on Tuesday to close at 102.18. It slipped further to 102.16 on Wednesday morning.
The euro strengthened to $1.1202, while the British pound rose to $1.3259.
The Japanese yen traded at 158.38 against the dollar, while the Chinese yuan remained at 6.69 per dollar.
The yield on the US 10-year Treasury bond declined to 5.223% on Wednesday morning.
The rupee strengthened 0.50% on Tuesday following intervention by the Reserve Bank of India. The dollar declined by 49 paise to close at ₹95.28. Over the past two sessions, the dollar has lost ₹1.45 against the rupee.
In the offshore forward market, the dollar was quoted at ₹95.01 on Wednesday morning. The decline in the US dollar index and continued RBI measures could support further gains for the rupee.
The Chinese yuan weakened to ₹14.24, while the euro slipped marginally to ₹106.75.
Crude oil prices rebounded on Wednesday morning after declining in the previous session.
Brent crude fell around 1% on Tuesday to close at $105.69 a barrel.
However, prices rose 1.40% on Wednesday morning to $107.09 a barrel as geopolitical concerns continued to influence energy markets.
West Texas Intermediate (WTI) crude was trading at $95.34 a barrel.
Major cryptocurrencies rebounded on Wednesday morning.
Bitcoin climbed above $83,400, while Ether moved past $2,500. Solana traded above $107.
(Tuesday, October 13)
Sensex: 73,033.78 | Up 1.54%.
Nifty 50: 22,721.95 | Up 1.60%.
Bank Nifty: 55,481.05 | Up 1.03%.
Nifty Midcap 100: 59,459.20 | Up 1.06%.
Nifty Smallcap 100: 19,447.40 | Up 0.11%.
Dow Jones: 51,670.10 | Down 0.35%.
S&P 500: 7,805.45 | Down 0.02%.
Nasdaq Composite: 27,204.38 | Down 0.15%.
US dollar: ₹95.28 | Down ₹0.49.
International gold: $4,162.10 an ounce | Down $10.70.
Kerala gold: ₹1,09,480 per sovereign | Down ₹280.
Brent crude: $105.69 a barrel | Down $0.96.