A positive close on Wall Street, especially in tech stocks, combined with a rally in Asian markets, is likely to trigger a modest rebound in Indian equities today. After three straight sessions of losses, investors are hoping for a relief rally.
Markets are closely watching key trade negotiations this week. Representatives from the European Union and the United States are meeting in Paris today, while a phone call between US President Donald Trump and Chinese President Xi Jinping is expected later this week, though not yet scheduled. Optimism around trade talks is keeping global markets buoyant.
Global investors are also monitoring how Russia responds to Ukraine’s recent heavy assault, with the dollar fluctuating in response to geopolitical tensions.
Brent crude remains above $65 per barrel, while gold rebounded today after a dip yesterday.
The OECD has lowered India’s growth forecast for the current financial year to 6.3 percent, citing global trade tensions. It has also cut the US growth estimate for 2025 from 2.2 percent to 1.6 percent due to tariff wars and policy uncertainty.
In derivatives trade, Gift Nifty closed at 24,714 on Tuesday night. This morning, it dipped to 24,702 before rising to 24,730, indicating a likely positive start for Indian markets.
European markets closed higher on Tuesday. Retail inflation in the eurozone came in slightly below expectations—1.9 percent versus the expected 2 percent—easing pressure on the euro. The European Central Bank is widely expected to cut interest rates by 25 basis points tomorrow. Meanwhile, EU and US trade representatives are meeting in Paris today for further discussions.
Wall Street started Tuesday on a weak note but ended with strong gains, driven by Nvidia and other tech stocks. Nvidia jumped 3 percent on rising AI chip demand, reclaiming the title of the world’s most valuable company from Microsoft.
The Dow Jones Industrial Average rose 214.16 points (0.51 percent) to close at 42,519.64. The S&P 100 added 34.43 points (0.58 percent) to finish at 5,970.37. The Nasdaq Composite climbed 156.34 points (0.81 percent) to end at 19,398.96.
US futures were trading slightly higher: Dow up 0.06 percent, S&P up 0.07 percent, and Nasdaq up 0.04 percent.
Asian markets were upbeat today. Japan’s Nikkei gained 0.80 percent, Australia’s index rose 0.70 percent, and both Hong Kong and mainland China markets opened higher.
Indian markets fell for the third straight session on Tuesday, despite a brief attempt to rebound in the morning. Continued uncertainty triggered selling pressure.
Foreign institutional investors, who pumped in nearly ₹19,000 crore in May, have turned net sellers in June. Despite fund managers proclaiming India’s long-term growth story on TV, the current trend shows sustained selling.
The Sensex oscillated between a high of 81,774 and a low of 80,575 before ending 0.78 percent lower. The Nifty touched 24,845 before closing at 24,502. The Bank Nifty, which began above the 56,000 mark, ended more than half a percent lower. The Nifty Midcap 100 closed with significant losses, while the Smallcap 100 ended with modest gains.
Barring realty and media, all sectoral indices ended in the red, with private banks taking the biggest hit. Unseasonal rainfall affected air-conditioner sales, denting earnings expectations for consumer durables companies.
The Nifty fell 174.10 points (0.70 percent) to 24,542.50. The Sensex declined 636.24 points (0.78 percent) to 80,737.51. Bank Nifty dropped 303.45 points (0.54 percent) to 55,599.95. The Midcap 100 declined 258.45 points (0.45 percent) to 57,517.10, while the Smallcap 100 gained 18.60 points (0.10 percent) to close at 18,114.15.
In the broader market, declines outnumbered advances. On the BSE, 1,673 stocks advanced, while 2,344 declined. On the NSE, 1,224 advanced and 1,696 declined.
Sixty stocks on the NSE hit 52-week highs, while 25 touched lows. As many as 103 stocks hit upper circuits, while 71 were locked in lower circuits.
Foreign investors net sold shares worth ₹2,853.83 crore on Monday in the cash market. Domestic institutions, meanwhile, bought equities worth ₹5,907.97 crore.
While the Nifty approached the lower end of the 24,500–24,800 range, it has not broken below its support. A fall below 24,400 could signal further bearishness. Immediate support lies at 24,450 and 24,390, with resistance seen at 24,760 and 24,845.
After surging on Monday due to trade war fears and global tensions, gold prices dipped on Tuesday, mainly due to a stronger dollar index. Gold futures fell nearly 1 percent to close at $3,353.80 an ounce, but rebounded to $3,370 this morning.
In Kerala, gold prices rose by ₹160 on Tuesday to ₹72,640 per sovereign.
Silver climbed to $34.62 per ounce—the first time since 2012 it crossed the $34 mark.
