Global markets remained on edge as investors awaited greater clarity from ongoing US-Iran negotiations in Switzerland. A stronger US dollar and fluctuating crude oil prices weighed on sentiment, while most Asian markets traded lower on Tuesday.
Gift Nifty, which closed at 24,208.50 on Monday night, slipped to around 24,104 in early trade, indicating a mildly negative start for Indian equities.
Negotiations between the US and Iran are continuing in Switzerland, with both sides reporting progress. Washington has temporarily eased restrictions on Iranian oil exports for 60 days and permitted purchases of certain Iranian products. Senior political leaders have returned home, leaving technical teams to continue discussions. A monitoring mechanism has also been established to oversee the Lebanon peace process.
India's core infrastructure industries grew only 0.5 percent in May, the weakest expansion in seven months, compared with 1.8 percent growth in April.
Output declined in refinery products, crude oil, natural gas, fertilisers and coal, while cement, steel and electricity production registered growth.
US trade representative Jamieson Greer is scheduled to hold talks with Commerce Minister Piyush Goyal in New Delhi over the next two days to advance a bilateral trade agreement.
India is seeking tariff concessions more favourable than those granted to several Asian peers and wants any agreement to have a limited duration. New Delhi is also signalling that it is under no immediate pressure to conclude a deal.
The southwest monsoon remains significantly below normal. According to the India Meteorological Department, rainfall was 43 percent below normal as of June 22.
More than 72 percent of the country has recorded rainfall deficits exceeding 20 percent. Key agricultural regions have received between 40 percent and 91 percent less rain than normal. Meteorologists attribute the weakness to El Niño conditions, raising concerns over agricultural output and economic growth.
Wall Street closed mixed on Monday as technology stocks faced heavy selling pressure.
The Dow Jones Industrial Average gained 148.01 points, or 0.29 percent, to 51,712.71. The S&P 500 fell 27.79 points, or 0.37 percent, to 7,472.79, while the Nasdaq Composite dropped 351.33 points, or 1.33 percent, to 26,166.60.
SpaceX shares plunged 16.43 percent to $154.60, extending losses for a third consecutive session. The stock has now fallen more than 24 percent from its recent peak after the company announced plans to issue $20 billion worth of bonds.
US futures were mixed on Tuesday morning, with Dow futures higher while S&P 500 and Nasdaq futures traded lower.
European markets ended mostly higher on optimism surrounding the Switzerland negotiations. The UK's FTSE 100 rose 0.72 percent, while France's CAC index was the only major European benchmark to close lower.
Asian markets were largely weaker on Tuesday. Japan's Nikkei pared losses after falling more than 0.5 percent. South Korea's Kospi declined nearly 2 percent. Hong Kong's Hang Seng edged up 0.15 percent, while Shanghai slipped 0.10 percent.
Indian equities rose for a sixth consecutive session on Monday, supported by easing oil prices and optimism over the Iran talks. However, gains moderated later in the day due to concerns over weak monsoon rainfall and rupee depreciation.
Consumer goods and durable stocks came under pressure amid fears that weak rainfall could affect rural demand.
Foreign portfolio investors turned net sellers, offloading equities worth ₹635.91 crore. Domestic institutional investors remained buyers, investing a net ₹1,035.72 crore.
Federal Bank slipped 0.05 percent, CSB Bank fell 0.82 percent and South Indian Bank lost 3.67 percent. Dhanlaxmi Bank gained 0.70 percent.
Rajesh Exports, which had fallen for seven consecutive sessions amid controversy over alleged accounting irregularities, hit the upper circuit after rising 5 percent.
Gold prices remained volatile amid a stronger dollar and uncertainty over future Federal Reserve interest-rate decisions.
After closing at $4,192.60 an ounce on Monday, gold slipped to around $4,160 in early trade on Tuesday.
Investors are awaiting the release of the US Personal Consumption Expenditure (PCE) inflation data, a key indicator used by the Federal Reserve.
Morgan Stanley said gold could reach $5,200 an ounce by year-end if inflows into gold exchange-traded funds (ETFs) recover. Global gold ETF assets currently stand at about $604 billion, backed by 4,121 tonnes of gold.
In Kerala, 22-carat gold jumped ₹1,400 per sovereign on Monday to ₹1,08,520.
Silver eased to $65.13 an ounce, while platinum traded at $1,671, palladium at $1,251 and rhodium at $7,700.
Industrial metals continued to strengthen. Copper rose 0.82 percent to $13,641.65 a tonne, while aluminium gained 0.17 percent to $3,410.35. Zinc, nickel and tin also advanced, though lead declined.
Natural rubber prices weakened slightly. In Kerala, RSS-4 rubber fell to ₹27,300 per quintal.
Cocoa surged 7.84 percent to $4,588 a tonne amid concerns that El Niño could reduce production in West Africa.
The US dollar index climbed above the 101 mark, closing at 101.02 and rising to 101.05 in early trade on Tuesday.
The euro weakened to $1.1425 and the pound to $1.3239. The Japanese yen fell to 161.57 per dollar, remaining near multi-decade lows.
The yield on the US 10-year Treasury note rose to 4.507 percent.
The Indian rupee ended lower on Monday after a volatile session. The dollar gained 36 paise to close at ₹94.68.
In the offshore non-deliverable forward market, the dollar was quoted around ₹94.68 on Tuesday morning. The euro strengthened to ₹108.17, while the Chinese yuan traded at ₹13.97.
Crude oil prices remained volatile but continued to trend lower.
Brent crude fell from $81.27 a barrel over the weekend to around $77.78 on Tuesday morning. US WTI crude dropped to $73.84 a barrel.
Cryptocurrencies moved higher, with Bitcoin trading above $64,100. Ether climbed above $1,730, while Solana traded above $72.
Sensex: 77,094.07 (+0.38%)
Nifty 50: 24,102.90 (+0.37%)
Bank Nifty: 57,935.60 (+0.43%)
Nifty Midcap 100: 62,729.10 (+0.34%)
Nifty Smallcap 100: 18,897.00 (+0.60%)
Dow Jones: 51,712.71 (+0.29%)
S&P 500: 7,472.79 (-0.37%)
Nasdaq: 26,166.60 (-1.33%)
Dollar/rupee: ₹94.68 (+₹0.36)
Gold (ounce): $4,192.60 (+$35.90)
Gold (sovereign): ₹1,08,520 (+₹1,400)
Brent crude: $77.90 (-$3.30)