The Indian stock market is poised for gains today as global conditions turn favorable. Ukraine has agreed to a ceasefire, and the United States has resumed military aid to the country, boosting market sentiment.
Meanwhile, Canada’s Ontario province has announced a 25% increase in electricity prices for exports to the U.S., prompting Washington to engage in tariff negotiations. Additionally, former U.S. President Donald Trump has revoked his decision to double tariffs on Canadian vehicles from April 2 and on steel imports from today. This reversal is expected to provide relief to the markets.
Later today, the release of retail inflation data may also support market sentiment. Inflation is expected to remain below 4%, which could be a positive factor for investors.
In the derivatives market, GIFT Nifty closed at 22,524.50 on Tuesday and climbed to 22,555 this morning, indicating a slightly positive opening for the Indian market.
European markets ended Tuesday in losses. Trump’s initial tariff hike on Canadian vehicles negatively impacted Stellantis shares, which fell by 5%, while airline company IAG declined by 6.1%.
The U.S. market also struggled due to uncertainties over tariffs, which could pose significant risks to economic growth. Leading banks issued warnings, with Goldman Sachs lowering its U.S. growth forecast from 2.4% to 1.7%, and Morgan Stanley reducing its projection from 1.9% to 1.5%.
Despite technology stocks gaining in early trading, the Nasdaq Composite closed with a slight loss. Apple’s stock declined by 2.92%, while Tesla and Nvidia rose by 3.79% and 1.66%, respectively. Tesla’s stock further climbed by 2% after market hours.
On Tuesday, the Dow Jones Industrial Average dropped by 478.23 points (-1.14%) to close at 41,433.48. The S&P 500 lost 42.49 points (-0.75%) to finish at 5,572.07, while the Nasdaq Composite slid by 32.20 points (-0.18%) to 17,436.10.
This morning, U.S. futures showed a recovery, with the Dow up by 0.33%, the S&P 500 rising by 0.45%, and the Nasdaq gaining 0.58%.
Asian markets opened with steep losses today but pared some of their declines. Japan’s Nikkei rose by 0.25%, South Korea’s Kospi climbed by 1.1%, while the Australian market remained down by 1.4%. Chinese and Hong Kong indices also traded lower.
Indian markets experienced high volatility yesterday, initially falling sharply before recovering by 0.60% to close with minor gains and losses.
Sectors such as automobiles, IT, media, and FMCG closed in the red, while realty stocks surged. Oil & gas, metals, financials, pharma, healthcare, and consumer durables also ended higher.
On Tuesday, the Nifty 50 gained 37.60 points (+0.17%) to close at 22,497.90, while the Sensex slipped by 12.85 points (-0.02%) to 74,102.32. The Bank Nifty declined by 362.85 points (-0.75%) to 47,853.95. The Midcap index rose by 0.67% to 48,762.75, whereas the Small-cap index dropped by 0.80% to close at 15,075.90.
Foreign institutional investors (FIIs) were net sellers in the cash market, offloading ₹2,823.76 crore, while domestic institutional investors (DIIs) made net purchases worth ₹2,001.79 crore.
The broader market remained under selling pressure, with the advance-decline ratio favoring declines. On the BSE, 1,354 stocks advanced, while 2,629 declined. On the NSE, 1,041 stocks gained, whereas 1,850 closed lower.
Market sentiment, which had turned bearish, has now improved as the Nifty found support at 22,300 and rebounded. If Nifty crosses 22,700, it could aim for 23,000. Today, support levels are seen at 22,365 and 22,240, while resistance is expected at 22,525 and 22,650.
IndusInd Bank’s massive drop weighed on the private banking sector, causing its index to decline by 1.38%, while the Bank Nifty fell by 0.75%. The bank suffered significant losses in foreign exchange derivatives trading, prompting intervention from the Reserve Bank of India (RBI).
IndusInd Bank reported that there will be a 2.35% decline in its net worth, estimating a loss of ₹1,530 crore from the transaction. Several brokerage firms downgraded the stock to a sell rating.
The bank’s promoters, the Hinduja family, have indicated they are committed to stabilising the bank. They have sought approval to increase their stake from 15% to 26%. Ashok Hinduja, chairman of IndusInd Holdings, leads the promoter group.
IndusInd Bank’s stock crashed by 27% yesterday, wiping out ₹19,000 crore in market value. Life Insurance Corporation of India (LIC), which holds a 5.23% stake, saw losses of around ₹900 crore, while mutual funds suffered losses exceeding ₹6,000 crore.
In times of economic uncertainty, gold remains a safe-haven asset. The metal surged by $30 per ounce to close at $2,919.60. This morning, gold traded slightly lower at $2,917 per ounce.
In Kerala, gold prices fell by ₹240 per sovereign to ₹64,160 on Tuesday. However, prices are expected to rise significantly today.
Silver prices soared, reaching $32.89 per ounce.
The U.S. dollar index weakened further, closing at 103.42 and trading at 103.49 this morning.
The U.S. dollar index weakened further, closing at 103.42 and trading at 103.49 this morning.
The Indian rupee rebounded after initial volatility, appreciating by 12 paise to close at 87.21 per dollar. The Chinese yuan remained at 7.26 per dollar, while the euro traded at $1.09. Other major currencies, including the British pound, Japanese yen, and Swiss franc, continued to strengthen against the dollar.
The official U.S. employment report for January showed job growth, pushing bond yields lower. The yield on the 10-year U.S. Treasury fell to 4.278%. Markets will react to inflation data later today.
Easing recession fears have lifted crude oil prices. Brent crude is nearing $70 per barrel, closing at $69.56 after minor fluctuations. This morning, Brent crude traded higher at $69.94. West Texas Intermediate (WTI) crude stood at $66.69, while UAE’s Murban crude reached $70.72 per barrel.
Cryptocurrencies saw a slight recovery from lower levels. Bitcoin rose to $82,750, while Ethereum approached $1,925.
Industrial metals displayed divergent trends. Copper gained 0.97% to $9,639.18 per tonne, while aluminium rose by 0.19% to $2,699.50. However, nickel and lead fell by 0.75% and 0.13%, respectively. Zinc increased by 1.67%, and tin gained 0.66%.
Sensex 30: 74,102.32 (-0.02%)
Nifty 50: 22,497.90 (+0.17%)
Bank Nifty: 47,853.95 (-0.75%)
Midcap 100: 48,762.75 (+0.67%)
Small-cap 100: 15,075.90 (-0.80%)
Dow Jones: 41,433.50 (-1.14%)
S&P 500: 5,572.07 (-0.75%)
Nasdaq: 17,436.10 (-0.18%)
USD/INR: ₹87.21 (-₹0.12)
Dollar Index: 103.42 (-0.48)
Gold (ounce): $2,919.60 (+$30.50)
Gold (sovereign): ₹64,400 (+₹80)
Crude Oil (Brent): $69.56 (+$0.28)
