The war in Iran continues with no immediate resolution in sight. The Strait of Hormuz remains closed, though concerns in financial markets have eased for now. Oil prices have slipped below $90 a barrel, Asian markets are trading higher, and gold has moved up again.
The US market ended flat after a volatile session on Tuesday, reflecting lingering uncertainty about the conflict and energy supplies. However, US futures were trading higher this morning.
In derivatives trading at GIFT City, GIFT Nifty touched 24,278.50 on Tuesday night and rose to 24,346 in early trading today, suggesting that the Nifty may open with a mild decline or cautious movement.
Indian equities rose nearly 1 percent on Tuesday as oil prices eased and hopes grew that the conflict might not escalate further.
Most sectoral indices ended higher except IT and oil and gas. The rally was led by banks and financial stocks, while automobiles, consumer durables, real estate, metals, pharmaceuticals and healthcare also posted strong gains.
Sensex rose 639.82 points (0.82 percent) to close at 78,205.98
Nifty climbed 233.55 points (0.97 percent) to 24,261.60
Bank Nifty gained 931.00 points (1.66 percent) to 56,950.80
Broader markets also advanced:
Midcap 100 rose 912.15 points (1.62 percent) to 57,177.65
Smallcap 100 gained 341.60 points (2.12 percent) to 16,473.80
Market breadth remained positive. On the BSE, 3,053 stocks rose while 1,231 declined. On the NSE, 2,540 shares advanced and 663 fell.
Foreign investors continued to sell. Foreign funds recorded net sales of ₹4,672.64 crore in the cash market, while domestic institutions made net purchases worth ₹6,333.26 crore.
India faces growing concern that a prolonged war could trigger foreign exchange pressures.
The Reserve Bank of India is reportedly considering measures to attract foreign currency deposits from non-resident Indians through banks, possibly via bond issuances or higher interest rates. A similar strategy was used in 2013 by then RBI governor Raghuram Rajan to stabilise the rupee during a currency crisis.
The government has also removed restrictions imposed in 2020 on capital investment from neighbouring countries, including China. Under the revised norms, up to 20 percent equity investment can be permitted without prior approval.
In another precautionary move, the government has introduced a financial demand in the Lok Sabha to create a ₹1 lakh-crore economic security fund to handle emergency measures if the war prolongs.
Meanwhile, supply restrictions on cooking gas and natural gas have pushed the hotel industry into crisis. Many mid-range restaurants in cities are reportedly shutting down.
Several industries are also under stress, including:
fertilisers and chemicals
automobile components
ceramics and glass
electrical manufacturing
small-scale industrial units
These disruptions could weigh on overall economic growth if the conflict persists.
Gold continues to fluctuate sharply amid geopolitical tensions and a weaker dollar. After moving between $5,119 and $5,240 an ounce on Tuesday, gold closed at $5,192.30. It climbed further to around $5,222 in early trading today.
Silver touched $90.14 an ounce before closing at $88.84 and was trading around $88.70 this morning.
Other precious metals:
Platinum: $2,204
Palladium: $1,658
Rhodium: $11,200
In Kerala, the price of 22-carat gold rose ₹520 on Tuesday to ₹1,19,080 per sovereign.
On the Multi Commodity Exchange, 24-carat gold closed at ₹1,63,201 per 10 grams, while silver ended at ₹2,77,000 per kilogram.
Most industrial metals gained on Tuesday.
Copper rose 1.33 percent to $12,920.15 per tonne. Aluminium edged down 0.05 percent to $3,386.98 per tonne. Zinc, nickel, lead and tin all moved higher.
Natural rubber in international markets rose 0.77 percent on Monday to 197.20 cents per kg.
Synthetic rubber prices jumped 7.89 percent to 15,275 yuan per tonne.
Cocoa prices increased 4.10 percent to $3,423.83 per tonne. Tea prices remained unchanged, while coffee slipped 0.74 percent.
Palm oil rose to 4,568 Malaysian ringgit per tonne.
Prices of polyethylene, polypropylene and PVC declined by up to 4.75 percent. Fertiliser prices such as urea and diammonium phosphate fell marginally.
US markets fluctuated sharply on Tuesday before ending largely flat, reflecting investor uncertainty about the war and oil prices.
Dow Jones fell 34.29 points (0.07 percent) to close at 47,706.51
S&P 500 declined 14.51 points (0.21 percent) to 6,781.48
Nasdaq rose 1.16 points (0.01 percent) to end at 22,697.10
US futures were trading higher this morning:
Dow futures up 151 points (0.32 percent)
S&P futures up 25 points (0.36 percent)
Nasdaq futures up 90 points (0.36 percent)
European markets ended Tuesday with gains of around 2 percent.
Asian markets are also advancing today. Japan’s Nikkei rose about 2 percent in morning trade, Australia’s index gained 0.5 percent, and South Korea’s Kospi climbed 2.5 percent. Hong Kong and Chinese markets also opened higher.
The dollar index declined on Tuesday and closed at 98.83. It briefly rose to 98.97 in early trading today before easing again.
The euro slipped to $1.1619, while the pound declined to $1.3431. The Japanese yen weakened to 157.99 per dollar, while the Chinese yuan strengthened to 6.88 per dollar.
The yield on US 10-year Treasury bonds rose to 4.146 percent amid expectations of higher interest rates.
The rupee posted a strong recovery on Tuesday, helped by falling oil prices and intervention by the Reserve Bank of India.
The dollar dropped 53 paise to close at ₹91.80.
In the offshore non-deliverable forward market, the dollar rose to ₹92.35 on Tuesday night before easing to around ₹91.88 this morning.
The Chinese yuan moved up to ₹13.36 while the euro stood at ₹106.78. These movements could influence currency trading in India today.
Crude oil prices continued to soften.
Brent crude closed at $87.80 on Tuesday. It dipped to $87.53 in early trading today before rebounding to around $88.33.
WTI crude was trading near $84.07, while UAE’s Murban crude was around $99.57.
Cryptocurrencies remain highly volatile.
Bitcoin, which climbed to $71,777 on Tuesday, slipped below $69,950 this morning. Ether was trading below $2,050, while Solana remained under $86.
(March 10, Tuesday)
Sensex: 78,205.98 (+0.82 percent)
Nifty 50: 24,261.60 (+0.97 percent)
Bank Nifty: 56,950.80 (+1.66 percent)
Midcap 100: 57,177.65 (+1.62 percent)
Smallcap 100: 16,473.80 (+2.12 percent)
Dow Jones: 47,706.51 (−0.07 percent)
S&P 500: 6,781.48 (−0.21 percent)
Nasdaq: 22,697.10 (+0.01 percent)
Dollar: ₹91.80 (−₹0.53)
Gold (ounce): $5,192.30 (+$54.30)
Gold (sovereign): ₹1,19,080 (+₹520)
Brent crude: $87.80 (−$11.16)