There has been no qualitative change in the external situation, and there are no reassuring developments within the domestic sector. The current assessment suggests that the market uncertainty observed over the past two days is likely to persist.
Tesla, the electric vehicle manufacturer, has begun preparations to enter the Indian market. Various department heads are currently discussing the issue of establishing a trade agreement with the United States, with the potential for further talks on providing additional incentives to Tesla.
The US-Russia peace talks on the Ukraine crisis broke down without a new date for negotiations, which has led to an increase in crude oil prices. The dollar index is also rising, while gold is on track to set a new record high.
In the derivatives market, the GIFT Nifty closed at 22,968, up slightly from 22,966 this morning, suggesting that the Indian market will open with a slight loss today.
European markets, however, closed at record highs on Tuesday, bolstered by indications that European nations will increase military spending, boosting defence stocks. Europe remains opposed to the US-Russia peace talks, leaving the European Union and Ukraine in a delicate position. As a result, Europe is being compelled to strengthen its defences without relying on the United States.
In the US market, which opened after a holiday, most indices were in the red, but small gains were recorded in the final minutes. The S&P 500 index hit a record high. Intel shares surged 16 percent, driven by reports that Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are looking to acquire parts of the company. Super Micro Computer also saw a rise of 16.4 percent, with the company up 75 percent in recent weeks.
The Dow Jones Industrial Average rose by 10.26 points (0.02%) to 44,556.34, the S&P 500 index gained 14.95 points (0.24%) to 6,129.58, and the Nasdaq Composite index rose 14.49 points (0.07%) to 20,041.26.
In futures, the indices are slightly higher, with the Dow Jones up by 0.03%, the S&P 500 up by 0.04%, and the Nasdaq up by 0.08%.
Asian markets are lower this morning, with the South Korean market being an exception, rising by 1.5%. Central banks in Australia and New Zealand have cut interest rates, with New Zealand reducing rates for the fourth time and Australia cutting rates for the first time since 2020.
The Indian market, after a volatile session yesterday, recovered from a sharp dip. Although the market was in the red for most of the day, the final-hour rally helped cover some of the losses. However, major indices still ended with marginal losses. The small-cap and micro-cap indices remain in the correction zone, with the small-cap index falling by 1.59% yesterday.
The Sensex and Nifty fell to 75,531 and 22,801, respectively, before recovering. On Tuesday, the Nifty closed 14.20 points (0.06%) lower at 22,945.30, while the Sensex closed 29.47 points (0.04%) lower at 75,967.39. The Bank Nifty rose by 171.60 points (0.35%) to 49,087.30, while the Midcap index fell by 0.20% to 49,751.55, and the Smallcap index closed at 15,168.45, down by 1.59%.
Foreign investors were net buyers in the cash market on Tuesday, with a net purchase of Rs 4,786.56 crore. Domestic funds and financial institutions also made a net purchase of Rs 3,072.19 crore.
The broader market remains bearish, with 974 stocks advancing and 2,979 stocks declining on the BSE. On the NSE, 720 stocks advanced and 2,128 stocks fell.
The Nifty held support at 22,800. If it falls further today, the next support level could be at 22,600. On the other hand, if the Nifty climbs above 23,000 today, it may move towards the 23,200-23,500 zone. The support levels for Nifty today are 22,840 and 22,800, with resistance likely at 22,990 and 23,100.
Tata Steel has received municipal approval to install an electric arc furnace at its Port Talbot plant in the UK. The UK government will provide £500 million in funding as part of a £1.25 billion investment, which will help protect 5,000 jobs at Tata Steel.
The ongoing global economic uncertainty has once again pushed gold prices higher. Official sources are not providing clear indications on how the trade war will unfold.
However, it is expected that the increased tariffs on several items, including steel and aluminium, will come into effect on March 12, while the tariff hike on medicines, clothing, textiles, and other items may be delayed.
Gold rose by $36.90 per ounce on Tuesday, closing at $2,935.90, and has climbed further to $2,938 this morning.
In Kerala, the price of gold rose by ₹240 to ₹63,760 on Tuesday, and is expected to rise further today.
Silver price reached $32.90 per ounce.
The rupee continued its downward trajectory yesterday, with the dollar rising by seven paise to close at ₹86.95. In the forward market, the dollar is priced at ₹87.10.
On Tuesday, the dollar index rose to close at 107.05, and this morning it further increased to 107.11.
The price of US bonds fell again, leading to higher investment returns. The investment return on 10-year bonds rose to 4.544%.
Crude oil prices have continued to rebound, driven by hopes of a resolution to the Ukraine conflict. Brent crude closed at $75.77, while WTI crude rose to $75.87 this morning, and was previously at $71.88. UAE's Murban crude increased to $78.24.
Cryptocurrencies continue to experience declines, with Bitcoin falling to $95,500 yesterday and Ether dropping below $2,670.
Industrial metals showed mixed results on Tuesday, with copper rising by 0.86% to $9,401.15 per tonne, and aluminium up by 0.14% to $2,650.43. Lead fell by 0.26% and nickel dropped by 0.32%, while tin and zinc both rose by 0.23%.
Sensex 30: 75,967.39 (-0.04%)
Nifty 50: 22,945.30 (-0.06%)
Bank Nifty: 49,087.30 (+0.35%)
Midcap 100: 49,751.45 (-0.20%)
Smallcap 100: 15,168.45 (-1.59%)
Dow Jones: 44,556.34 (+0.02%)
S&P: 6,129.58 (+0.24%)
Nasdaq: 20,041.26 (+0.07%)
Dollar ($): ₹86.95 (+₹0.07)
Dollar Index: 107.05 (+0.47)
Gold (ounce): $2,935.90 (+$36.90)
Gold (pound): ₹63,760 (+₹240)
Crude (Brent) Oil: $75.77 (+$0.44)
