West Asia tensions have intensified, with uncertainty clouding US-Iran negotiations. Washington said talks have been extended until Tehran presents a “unified proposal”, but prospects remain weak. Still, falling crude prices and gains in US futures are offering some comfort to markets.
Gift Nifty, traded at GIFT City, closed at 24,369.00 on Monday night and rose to 24,462 in early trade today, indicating a weak start for the Nifty.
The US has postponed talks after the Iranian delegation showed reluctance to engage. US President Donald Trump confirmed that the ceasefire has been extended until both sides arrive at a mutually acceptable proposal.
Internal divisions within Iran between moderates and hardliners continue to stall progress. Trump reiterated that failure to present an acceptable proposal could invite severe consequences.
Reports suggest Iran’s Revolutionary Guard Corps (IRGC) and other hardline factions opposed conditions discussed in the first round of talks in Islamabad. The ceasefire extension reportedly followed requests from Pakistan Prime Minister Shehbaz Sharif and army chief General Asim Munir to give Iran more time to finalise its stance.
There are also concerns about possible instability within Iran, including speculation of a power struggle involving the IRGC. Such developments could derail negotiations entirely.
US markets declined on Tuesday amid fears that talks may not materialise:
Dow Jones fell 293.18 points (0.59 percent) to 49,149.38
S&P 500 lost 45.13 points (0.63 percent) to 7,064.01
Nasdaq dropped 144.43 points (0.59 percent) to 24,259.96
However, US futures are trading higher this morning:
Dow futures up 246 points (0.50 percent)
S&P 500 futures up 41 points (0.57 percent)
Nasdaq futures up 191 points (0.72 percent)
Indian ADRs, after initial declines, rebounded in extended trading:
HDFC Bank rose to $26.81
ICICI Bank climbed to $29.14
Infosys recovered to $14.23
Wipro moved up to $2.16
European markets declined around 1 percent on Tuesday.
Asian markets opened lower today but showed mixed trends:
Japan’s Nikkei recovered after an early dip
South Korea’s Kospi edged higher after hitting a record on Tuesday
Australia declined nearly 1 percent
चीन and Hong Kong markets remained under pressure
Indian equities rallied strongly on Tuesday on hopes of easing tensions:
Realty, FMCG, banking, and financial stocks led gains
Nestlé surged 8.43 percent on earnings expectations
Hindustan Unilever, Trent, Varun Beverages, and United Spirits gained over 4 percent
Foreign investors remained sellers, while domestic funds provided support:
FIIs sold ₹1,918.99 crore
DIIs bought ₹2,221.27 crore
Key indices:
Sensex: 79,273.33 (+0.96 percent)
Nifty 50: 24,576.60 (+0.87 percent)
Bank Nifty: 57,371.45 (+1.39 percent)
Midcap 100: +0.49 percent
Smallcap 100: +0.88 percent
Market breadth remained positive across exchanges.
HCL Technologies reported 5.3 percent revenue growth (in dollar terms), but margins fell to 17.2 percent; results disappointed
Persistent Systems posted strong revenue (up 25 percent) and profit growth (up 33.7 percent), but still missed expectations
Infosys board is likely to discuss CEO Salil Parekh’s succession; his term ends next March
Trent board to consider bonus shares today
Aurobindo Pharma to begin ₹800 crore buyback at ₹1,475 per share from tomorrow
Gold saw sharp swings:
Fell $162 (about 4 percent) to $4,668 per ounce
Recovered to close at $4,721.10
Rose further to around $4,753 this morning
Kerala gold price remained unchanged at ₹1,13,880 per sovereign.
Silver rose to $77.86 per ounce. Platinum, palladium, and rhodium held steady.
Industrial metals advanced on improved sentiment:
Copper rose to $13,200.25 per tonne
Aluminium edged up to $3,545.98
Rubber prices increased 2.04 percent to 205.30 cents/kg.
Other commodities:
Cocoa fell 2.68 percent
Coffee gained slightly
Palm oil rose 1.36 percent
Fertilisers showed mixed trends
The dollar index closed at 98.39 and eased slightly this morning.
Euro: $1.1743
Pound: $1.3507
Yen: 159.32 per dollar
US 10-year yield rose to 4.29 percent.
The rupee weakened further:
Closed at 93.50 (down 37 paise)
NDF market suggests further weakness
Crude oil prices declined after the ceasefire extension:
Brent: down to $98.08
WTI: fell to $89.20
Cryptocurrencies fluctuated amid geopolitical uncertainty:
Bitcoin below $76,400
Ether below $2,330
Solana below $86.25
Sensex: 79,273.33 (+0.96 percent)
Nifty 50: 24,576.60 (+0.87 percent)
Bank Nifty: 57,371.45 (+1.39 percent)
Dow Jones: 49,149.38 (-0.59 percent)
S&P 500: 7,064.01 (-0.63 percent)
Nasdaq: 24,259.96 (-0.59 percent)
Dollar: ₹93.50 (+₹0.37)
Gold (ounce): $4,721.60
Gold (sovereign): ₹1,13,880
Brent crude: $98.48