The Nifty held firm at the 24,000 mark in early trade, even as PSU bank stocks declined by up to 4%. Meanwhile, the rupee opened weaker on Tuesday, slipping 18 paise to 94.37 against the US dollar from its previous close of 94.19. The decline in the local currency was driven by elevated crude oil prices and weakness across Asian peers, which weighed on market sentiment.
GIFT Nifty futures were trading at 24,002 points as of 7:58 am, indicating that the benchmark Nifty 50 would open below Monday’s close of 24,092.70.
Both the Nifty and Sensex snapped a three-session losing run on Monday, led by a rebound in information technology stocks following last week’s sharp selloff.
However, the broader momentum remains constrained due to the unresolved geopolitical tensions, particularly around the Strait of Hormuz – which handles about a fifth of global oil flows -pushing crude prices higher.
Elevated oil prices are a headwind for India, the world’s third-largest crude importer, as they heighten inflation risks, pressure economic growth and corporate earnings, and widen the country’s import bill.
Brent crude hovered around $109 per barrel as efforts to end the Iran war appear stalled.
US President Donald Trump is unhappy with the latest Iranian proposal aimed at ending the conflict, a US official said on Monday.
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Foreign portfolio investors offloaded domestic stocks worth 11.51 billion rupees ($122.2 million) on Monday, continuing their selling streak to the sixth session.
Domestic institutional investors bought 41.24 billion rupees worth of shares, remaining buyers for a third straight session.
Among individual stocks, Ultratech Cement, the country’s largest cement maker by capacity, will be in focus after beating quarterly profit estimates, aided by improved demand amid favourable weather for construction activity.
State-owned miner Coal India reported a larger-than-expected March-quarter profit, driven by higher prices and improved demand.
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