Efforts to revive diplomatic engagement with Iran have offered some relief to global markets, helping crude oil prices retreat from recent highs. US President Donald Trump is reportedly trying to remove a major obstacle to negotiations by pressing for a halt to Israeli military operations in Lebanon. While oil prices have cooled slightly after surging nearly 5 percent on fears that Iran had suspended talks with Washington, investor sentiment remains fragile.
US futures are trading lower, Asian markets have slipped more than 1 percent, and Gift Nifty signals a weak opening for Indian equities.
Gift Nifty closed at 23,460.50 on Monday night but dropped to 23,236 in early trade on Tuesday, indicating a significantly weaker start for the Nifty.
Economic data released on Monday painted a mixed picture.
GST collections in May rose only 3.2 percent, the slowest growth in six months.
While customs duty collections improved, domestic GST revenue declined 2.6 percent, suggesting softer business activity during April.
Industrial production growth slowed to 4.9 percent in April, compared with 5.7 percent a year earlier.
The automobile sector, however, delivered encouraging numbers.
Overall car sales rose 27 percent in May.
Maruti Suzuki reported 40 percent growth.
Tata Motors posted 42 percent growth.
Mahindra & Mahindra recorded 10.7 percent growth.
Hyundai's sales increased 9.1 percent.
Despite continuing uncertainty in West Asia, technology stocks drove US markets to fresh record highs on Monday.
Nvidia emerged as the biggest gainer after unveiling a new chip aimed at revitalising the personal computer market. The stock surged nearly 7 percent. Microsoft, IBM, Hewlett Packard, ServiceNow, ARM and Nebius also posted strong gains.
HPE soared 8 percent during regular trading and jumped a further 28 percent in after-hours trade after reporting record growth and issuing a strong outlook.
The Dow Jones gained 46.42 points (0.09 percent) to close at 51,078.88. The S&P 500 rose 19.90 points (0.26 percent) to 7,599.96, while the Nasdaq Composite advanced 114.19 points (0.42 percent) to 27,086.81.
Early Tuesday, US futures were trading lower:
Dow futures: down 245 points (0.48 percent)
S&P 500 futures: down 33 points (0.43 percent)
Nasdaq futures: down 202 points (0.67 percent)
Indian ADRs delivered mixed performance in New York.
HDFC Bank recovered in after-hours trading to close at $23.73.
ICICI Bank ended at $25.88 after a modest rebound.
Infosys surged more than 6 percent during regular trade and finished at $13.42.
Wipro closed unchanged in after-hours trading at $2.41.
European markets closed lower as hopes of a quick easing of tensions in the Gulf faded.
EasyJet jumped nearly 10 percent after reports that US investment firm Castlelake was considering a takeover bid.
Asian markets opened mostly lower on Tuesday.
Japan's Nikkei fell 1.10 percent.
Australia's benchmark index lost about 1 percent.
South Korea declined around 0.5 percent.
Hong Kong gained 0.85 percent.
Shanghai slipped 0.10 percent.
Indian equities fell for a fourth straight session on Monday as rising crude oil prices, persistent foreign selling, weak monsoon concerns and geopolitical uncertainty weighed on sentiment.
The Sensex has now lost more than 2,200 points, or over 3 percent, during the four-day decline.
IT, media and metal stocks bucked the trend.
Technology shares gained following the strong performance of global tech stocks. Several IT counters advanced more than 4 percent.
Zee Entertainment rose after securing broadcasting rights for the FIFA World Cup.
Wockhardt extended its rally after receiving US FDA approval for its new antibiotic Zaynich, which enjoys patent protection until 2038 and is designed to combat highly resistant bacterial infections.
Monday's market performance:
Sensex: 74,267.34 (-508.40 points, -0.68 percent)
Nifty 50: 23,382.60 (-165.15 points, -0.70 percent)
Bank Nifty: 53,643.10 (-596.10 points, -1.10 percent)
Nifty Midcap 100: 60,827.95 (-1.45 percent)
Nifty Smallcap 100: 17,979.80 (-0.88 percent)
Market breadth remained weak.
BSE: 1,556 stocks advanced, 2,808 declined.
NSE: 1,143 advanced, 2,192 declined.
Foreign institutional investors were net sellers of ₹3,911.68 crore in the cash market, while domestic institutions purchased shares worth a net ₹5,109.13 crore.
Gold retreated as traders booked profits after recent gains.
The metal closed at $4,486.10 per ounce on Monday, down $54.20, and slipped further to around $4,467 in early Tuesday trade.
In Kerala, 22-carat gold fell ₹600 per sovereign to ₹1,14,560.
Silver eased to $74.78 per ounce.
Other precious metals:
Platinum: $1,925
Palladium: $1,344
Rhodium: $8,250
Industrial metals extended gains.
Copper climbed 1.51 percent to $13,818.65 per tonne. Citigroup expects copper prices to touch $15,000 this year.
Aluminium hit a record high of $3,709.45 before closing at $3,707.48.
Zinc, nickel and tin advanced, while lead declined.
The Bangkok rubber market remained closed for a holiday.
In Kerala, RSS-4 rubber rose to ₹25,950 per quintal.
Cocoa prices resumed their decline, falling 0.61 percent to $3,899 per tonne.
Traders remain concerned that El Niño conditions could disrupt production.
The US Dollar Index rose to 99.20 on Monday before easing slightly to 99.16.
Euro: $1.1634
Pound sterling: $1.3457
Japanese yen: 159.65 per dollar
Chinese yuan: 6.77 per dollar
The yield on the US 10-year Treasury note eased to 4.455 percent.
The rupee recovered during Monday's session but ended only marginally stronger.
The currency closed at ₹94.99 per dollar, up one paisa. Traders reported significant dollar sales by the Reserve Bank of India.
In the offshore NDF market, the dollar was trading around ₹95.18.
Crude oil prices, which had surged on reports that Iran suspended negotiations with the US, softened after indications that dialogue could continue.
Brent crude: $94.55 per barrel
WTI crude: $91.75 per barrel
Even so, markets remain highly sensitive to developments in West Asia.
Cryptocurrency markets continued to trade weak.
Bitcoin: below $70,850
Ether: around $1,980
Solana: just above $80
Sensex: 74,267.34 (-0.68%)
Nifty 50: 23,382.60 (-0.70%)
Bank Nifty: 53,643.10 (-1.10%)
Nifty Midcap 100: 60,827.95 (-1.45%)
Nifty Smallcap 100: 17,979.80 (-0.88%)
Dow Jones: 51,078.88 (+0.09%)
S&P 500: 7,599.96 (+0.26%)
Nasdaq: 27,086.81 (+0.42%)
Dollar/₹: ₹94.99
Gold (oz): $4,486.10
Gold (sovereign): ₹1,14,560
Brent crude: $94.98
