The Indian stock market opened in the red on Tuesday, with benchmark indices Nifty50 and BSE Sensex tumbling sharply after Monday’s robust rally of over 3.5%. Nifty50 dropped below the 24,750 mark, while the Sensex slipped under 81,700 in early trade.
As of 9:58 AM, Nifty50 was trading at 24,729.80—down 195 points or 0.78%. BSE Sensex stood at 81,705.88, a decline of 724 points or 0.88%.
Monday’s rally had pushed the Nifty to a seven-month high, buoyed by easing geopolitical tensions and optimism around trade developments. However, the sharp correction today has tempered investor sentiment.
Market participants are now closely watching key economic indicators due later in the day, including India’s Consumer Price Index (CPI) inflation data and the US Core CPI numbers. These figures are expected to influence monetary policy expectations and short-term market direction.
Additionally, investors are awaiting the quarterly earnings reports of major companies such as Bharti Airtel and Tata Motors, which could sway sector-specific movements.
Global Cues and Commodities
US markets closed significantly higher on Monday, with the S&P 500 reaching its highest level since early March. Investor sentiment was boosted by a temporary tariff reduction agreement between the US and China—offering a respite from the trade tensions that escalated earlier this year under President Donald Trump’s administration.
Asian markets followed suit, opening higher on Tuesday, reflecting optimism from Wall Street gains and a pause in the US-China trade dispute.
Meanwhile, gold prices held steady, as reduced demand for safe-haven assets accompanied the return of risk appetite. Investors remained cautious ahead of the US inflation data, which could influence Fed policy expectations.
Oil prices edged lower after hitting a two-week high in the previous session. The decline followed news of the US-China tariff truce, signaling a potential easing in global trade frictions and reducing the immediate threat to energy demand.
The US dollar maintained its strength, supported by improved market sentiment following the trade breakthrough.
Investor Activity
Foreign portfolio investors (FPIs) were net buyers on Monday, purchasing shares worth ₹1,246 crore. Domestic institutional investors (DIIs) also remained active, with net purchases totaling ₹1,448 crore.
With Indian equities showing resilience despite global volatility, analysts suggest the broader market trend may remain positive—supported by easing geopolitical risks, steady FPI inflows, and signs of economic recovery.
