Mediation efforts are continuing, but there is still no clear prospect of a ceasefire in the West Asian war. Crude oil prices have climbed above $92 a barrel due to a combination of factors, raising concerns for India. Gold prices surged to as high as $4,124 an ounce.
Asian markets, except China, are trading with strong gains today. US futures are moving lower.
In derivatives trading at GIFT City, GIFT Nifty closed at 24,109 on Tuesday night. It rose to 24,130 this morning before retreating. This indicates that the Indian market could open with significant losses.
US President Donald Trump threatened to bomb Pickaxe Mountain, where Iran is believed to be storing uranium-enrichment machines inside caves carved into the rock.
Meanwhile, Saudi oil tankers in the Red Sea turned back following threats of attacks by the Houthis. Trump said he did not intend to attack the Houthis. Dissatisfaction with some of Saudi Arabia’s positions was cited as the reason.
Russia and Kazakhstan have suspended oil exports through the Black Sea following repeated Ukrainian attacks. This has helped push crude oil prices above $92 a barrel.
The India Meteorological Department said the deficit in southwest monsoon rainfall narrowed to 21.3% as of July 21.
In Kerala, the rainfall deficit widened to 35%. Uttar Pradesh, Bihar, Punjab, Jharkhand, Gujarat, Karnataka, Telangana and Andhra Pradesh have recorded rainfall deficits of more than 20%.
Rainfall is more than 20% below normal across 61% of India’s geographical area.
Behind-the-scenes efforts to facilitate talks between the US and Iran helped Wall Street recover on Tuesday after three consecutive sessions of losses.
Investors returned to semiconductor and artificial intelligence companies. Traditional industrial companies also attracted buying following encouraging earnings.
After remaining subdued for several days, SpaceX shares rose to $123. Tesla, another company associated with Elon Musk, gained 2.53% ahead of its results later this week.
Nvidia shares advanced, helping the company regain a market capitalisation of $5 trillion.
The Dow Jones Industrial Average gained 385.38 points, or 0.74%, to close at 52,224.64 on Tuesday. The S&P 500 rose 65.92 points, or 0.89%, to 7,509.20. The Nasdaq Composite jumped 329.13 points, or 1.29%, to close at 25,837.21.
US futures are trading lower today. Dow futures are down 45 points, or 0.09%. S&P 500 futures have fallen nine points, or 0.11%, while Nasdaq futures are down 64 points, or 0.24%.
In the American Depositary Receipt market in New York, HDFC Bank gained 0.55% during regular trading on Tuesday. It climbed another 6.34% in after-hours trading to close at $23.81.
ICICI Bank rose 0.97% during regular trading before falling 0.17% in after-hours trade to $30.
Infosys declined 1.33% during regular trading and later gained 0.27% to close at $11.19. Wipro fell 1.62% during the regular session before rising 0.55% in after-hours trade to $1.83.
European markets recorded strong gains on Tuesday.
In the UK, markets welcomed Prime Minister Andy Burnham’s decision to appoint former defence minister John Healey as finance minister.
Asian markets, except China, are trading higher today.
South Korea’s Kospi surged 6%, while Japan’s Nikkei gained 1.6%. Japan’s exports jumped 19.3% in June, the strongest growth in four years. The depreciation of the yen supported export growth.
Australia’s benchmark index gained 0.50%. Hong Kong fell 1%, while Shanghai declined 0.50%.
Concerns over the foreign-exchange mobilisation programme eased, but declines in large companies dragged the Indian market lower again.
Mid-cap and small-cap stocks, however, performed better. Reliance Industries, State Bank of India, HDFC Bank, Tata Consultancy Services and Infosys declined on Tuesday.
Strong results from Bajaj Auto and TVS Motor lifted automobile stocks. Maruti Suzuki raised the prices of its cars. The company’s market share has been declining as it lacks strong models in the sport utility vehicle segment.
Foreign investors turned net buyers on Tuesday, purchasing shares worth a net ₹1,650.16 crore in the cash market. Domestic institutional investors were net sellers of ₹656.88 crore.
The Sensex fell 238.41 points, or 0.31%, to close at 77,470.11. The Nifty declined 50.80 points, or 0.21%, to 24,187.70.
The Bank Nifty dropped 109.65 points, or 0.19%, to 57,835.35. The Nifty Midcap 100 gained 185.85 points, or 0.30%, to close at 62,987.60. The Nifty Smallcap 100 rose 101.60 points, or 0.53%, to 19,428.05.
Although the main indices declined, the broader market showed a mixed trend. On the BSE, 2,084 stocks advanced and 2,155 declined. On the NSE, 1,790 stocks gained while 1,491 fell.
Kalyan Jewellers rose 1.49% following the increase in gold prices.
Federal Bank touched a record high of ₹356.75 before closing 1.64% higher at ₹356.50. CSB Bank gained 2.76%, while South Indian Bank advanced 2.86%. Dhanlaxmi Bank rose 1.78%.
The surge in gold prices lifted Manappuram Finance by 4.55% and Muthoot Finance by 3.27%.
Bandhan Bank’s asset quality improved. Although its operating profit declined 18.59% in the June quarter, net profit increased 34.87%.
Mahindra & Mahindra Financial Services reported a 12% increase in revenue, while net profit jumped 70%.
Bajaj Auto sold 14.38 lakh vehicles in the first quarter, an increase of 29%. Revenue rose 65%, while net profit increased 46%.
The company plans to expand its annual production capacity from 71.1 lakh vehicles to 90 lakh vehicles, with much of the additional capacity intended for electric vehicles. It also plans to launch 10 new models. Bajaj has acquired Netherlands-based KTM.
TVS Motor plans to expand its two-wheeler manufacturing capacity from 68 lakh vehicles to 83 lakh vehicles. Its three-wheeler capacity will be increased from 2.5 lakh to 4.2 lakh units.
The company plans capital expenditure of ₹3,500 crore, primarily to increase electric-vehicle capacity. Its first-quarter net profit rose 65%.
Expectations that a resolution to the West Asian war may not be far away pushed gold higher once again.
Gold gained $91.01, or 1.75%, on Tuesday to close at $4,078.70 an ounce. It climbed to as high as $4,124 this morning, with indications that prices could rise further.
In Kerala, the price of 22-carat gold rose by ₹560 on Tuesday to ₹1,05,760 per sovereign.
Silver closed at $58.91 an ounce and rose to $59.90 this morning.
Platinum was trading at $1,634, palladium at $1,269 and rhodium at $7,825.
Industrial metals, including aluminium, recorded further gains.
Copper rose 1.67% to $13,855.90 a tonne. Storms and heavy rainfall in Chile, a major copper-producing country, have disrupted operations at several mines.
Scrap trading in China has also been affected following action against tax evasion. Inventories at the London and Shanghai metal exchanges are at record lows. Market speculation suggests that the shortage could continue until the middle of 2027.
Aluminium gained 0.78% to close at $3,159.90. Zinc, tin, nickel and lead also advanced.
International rubber prices continued to decline, while prices remained high in Kerala.
In Bangkok, RSS-1 was quoted at $291.40 per quintal and RSS-3 at $288.00 per quintal. In Kerala, RSS-4 remained at ₹28,200 per quintal.
The return of favourable weather in Southeast Asia has enabled production to resume at full capacity, increasing supply. Chinese demand has also weakened.
Cocoa prices rose 1.58% on Tuesday to $5,607 a tonne. Expectations that the El Niño weather phenomenon will reduce production in West Africa continue to support prices.
Arabica coffee fell 0.54% to $3.228 a pound. Coffee production in Brazil has declined considerably, while inventories are at their lowest level since March 2024.
The US Dollar Index rose on Tuesday to close at 101.17. It climbed to 101.20 this morning before easing slightly.
The euro fell to $1.1405 and the pound to $1.3387. The Japanese yen weakened to 163.14 against the dollar. The Chinese yuan remained at 6.77 to the dollar.
The yield on the US 10-year Treasury note rose to 4.63% this morning.
The Indian rupee strengthened on Tuesday. The dollar fell by 21 paise to close at ₹96.45. Reports indicating that the foreign-exchange mobilisation programme was succeeding supported the rupee.
In the offshore non-deliverable forward market, the dollar was quoted at ₹96.34 this morning. The Chinese yuan stood at ₹14.22 and the euro at ₹109.77.
Crude oil prices are rising as oil transportation faces disruptions in the Strait of Hormuz, the Red Sea and the Black Sea near Ukraine.
Russia is no longer exporting oil through the Black Sea. Kazakhstan has also suspended oil shipments through the route. Houthi threats in the Red Sea have affected Saudi Arabian exports.
Brent crude rose 2% on Tuesday to close at $91.01 a barrel. It gained another 2% this morning to reach $92.51. West Texas Intermediate crude rose to $84.65.
Cryptocurrencies continued to rise. Bitcoin moved above $66,600 this morning. Ether crossed $1,940, while Solana rose above $78.
Tuesday, July 21, 2026
