Domestic benchmark equity indices Sensex and Nifty opened lower on Tuesday, after logging their best day in more than four years following a fragile ceasefire with Pakistan over the weekend.
The BSE Sensex was trading 931 points, or 1.13 %, lower at 81,498. The Nifty50 was down 196 points, or 0.79 %, trading at 24,728 around 9:52 am.
Among Sensex stocks, Infosys, Eternal, Kotak Mahindra Bank, Power Grid, and ICICI Bank opened with losses, declining up to 2%. On the other hand, Sun Pharma, IndusInd Bank, Bajaj Finance, Tech Mahindra, and Maruti opened in the green.
Meanwhile, the Nifty 50 and Sensex surged nearly 4% on Monday in a broad-based relief rally after India and Pakistan agreed to a ceasefire following days of cross-border tensions.
The rally was supported by strong buying from both foreign and domestic investors. Foreign portfolio investors (FPIs) purchased Indian equities worth Rs 1,246 crore ($146.9 million) on Monday, according to provisional data.
So far in May, FPIs have invested $1.7 billion in Indian markets, driven by optimism over domestic growth, a weaker dollar, and easing global trade concerns.
On the sectoral front, Nifty Bank, Auto, Financial Services, FMCG, IT, Realty, and Oil & Gas indices declined by up to 1%, while Nifty Pharma and PSU Bank gained 1.8% and 0.6%, respectively.
Among individual stocks, Paytm dropped 5% after Ant Financial, the fintech arm of Alibaba Group, reportedly sold 1.7 crore shares—amounting to a 4.1% stake—via a block deal.
Swiggy shares fell 6.4% as nearly 83% of its shareholding became eligible for trading for the first time, according to a report by domestic brokerage JM Financial.
Meanwhile, the market capitalisation of all listed companies on BSE declined by just Rs 20,126 lakh crore to Rs 432.35 lakh crore.
Experts View
"It is important to understand that yesterday's sharp 916-point surge in Nifty was not caused by institutional activity. The combined FII and DII buying yesterday was only Rs 2694 crores. This means the market surge was triggered by short-covering and HNI plus retail buying. This implies that institutional activity is likely to remain subdued in the coming days which may constrain the continuation of the rally," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"The agreement between US and China to reduce tariffs for 90 days signals the possibility of the end of the trade war between US and China. This augurs well for the global economy. Since the probability of a recession in the US has come down, Indian IT companies might benefit from the higher tech spending by US companies," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a negative opening, Nifty can find support at 24,800 followed by 24,700 and 24,500. On the higher side, 25,000 can be an immediate resistance, followed by 25,100 and 25,200."
Global Markets
Asian stocks joined the global rally and the U.S. dollar held on to most of its gains on Tuesday as investors heaved a sigh of relief after a temporary halt in the trade war between the U.S. and China eased worries of a global recession.
Japan's Nikkei soared 2%, touching its highest level since February 25, and tech-heavy Taiwan also rose 2%, while Chinese stocks inched higher in early trading.
That left the MSCI's broadest index of Asia-Pacific shares outside Japan at a six-month peak. The S&P 500 rose over 3% while Nasdaq soared 4.3% after the U.S. and China agreed to slash tariffs for at least 90 days.
The U.S. said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on U.S. imports to 10% from 125%, providing relief to the markets, although concerns linger that tariffs could hurt the global economy.
FII/DII Tracker
The Foreign institutional investors (FIIs) purchased equities of Rs 1,246 crore on May 13, while Domestic institutional investors (DIIs) also bought equities of Rs 1,488 crore on the same day.
Oil Falls
Oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite earlier optimism over the pause in the U.S.-China trade war after both countries temporarily cut tariffs.
Brent crude futures dropped 22 cents, or 0.3%, to $64.74 per barrel by 0248 GMT. U.S. West Texas Intermediate (WTI) crude fell 18 cents, or 0.3%, to $61.77.
Rupee vs Dollar
The Indian rupee jumped 74 paise to 84.62 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.14% to 101.54 level.
(With inputs from agencies)
The BSE Sensex was trading 931 points, or 1.13 %, lower at 81,498. The Nifty50 was down 196 points, or 0.79 %, trading at 24,728 around 9:52 am.
Among Sensex stocks, Infosys, Eternal, Kotak Mahindra Bank, Power Grid, and ICICI Bank opened with losses, declining up to 2%. On the other hand, Sun Pharma, IndusInd Bank, Bajaj Finance, Tech Mahindra, and Maruti opened in the green.
Meanwhile, the Nifty 50 and Sensex surged nearly 4% on Monday in a broad-based relief rally after India and Pakistan agreed to a ceasefire following days of cross-border tensions.
The rally was supported by strong buying from both foreign and domestic investors. Foreign portfolio investors (FPIs) purchased Indian equities worth Rs 1,246 crore ($146.9 million) on Monday, according to provisional data.
So far in May, FPIs have invested $1.7 billion in Indian markets, driven by optimism over domestic growth, a weaker dollar, and easing global trade concerns.
On the sectoral front, Nifty Bank, Auto, Financial Services, FMCG, IT, Realty, and Oil & Gas indices declined by up to 1%, while Nifty Pharma and PSU Bank gained 1.8% and 0.6%, respectively.
Among individual stocks, Paytm dropped 5% after Ant Financial, the fintech arm of Alibaba Group, reportedly sold 1.7 crore shares—amounting to a 4.1% stake—via a block deal.
Swiggy shares fell 6.4% as nearly 83% of its shareholding became eligible for trading for the first time, according to a report by domestic brokerage JM Financial.
Meanwhile, the market capitalisation of all listed companies on BSE declined by just Rs 20,126 lakh crore to Rs 432.35 lakh crore.
Experts View
"It is important to understand that yesterday's sharp 916-point surge in Nifty was not caused by institutional activity. The combined FII and DII buying yesterday was only Rs 2694 crores. This means the market surge was triggered by short-covering and HNI plus retail buying. This implies that institutional activity is likely to remain subdued in the coming days which may constrain the continuation of the rally," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"The agreement between US and China to reduce tariffs for 90 days signals the possibility of the end of the trade war between US and China. This augurs well for the global economy. Since the probability of a recession in the US has come down, Indian IT companies might benefit from the higher tech spending by US companies," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a negative opening, Nifty can find support at 24,800 followed by 24,700 and 24,500. On the higher side, 25,000 can be an immediate resistance, followed by 25,100 and 25,200."
Global Markets
Asian stocks joined the global rally and the U.S. dollar held on to most of its gains on Tuesday as investors heaved a sigh of relief after a temporary halt in the trade war between the U.S. and China eased worries of a global recession.
Japan's Nikkei soared 2%, touching its highest level since February 25, and tech-heavy Taiwan also rose 2%, while Chinese stocks inched higher in early trading.
That left the MSCI's broadest index of Asia-Pacific shares outside Japan at a six-month peak. The S&P 500 rose over 3% while Nasdaq soared 4.3% after the U.S. and China agreed to slash tariffs for at least 90 days.
The U.S. said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on U.S. imports to 10% from 125%, providing relief to the markets, although concerns linger that tariffs could hurt the global economy.
FII/DII Tracker
The Foreign institutional investors (FIIs) purchased equities of Rs 1,246 crore on May 13, while Domestic institutional investors (DIIs) also bought equities of Rs 1,488 crore on the same day.
Oil Falls
Oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite earlier optimism over the pause in the U.S.-China trade war after both countries temporarily cut tariffs.
Brent crude futures dropped 22 cents, or 0.3%, to $64.74 per barrel by 0248 GMT. U.S. West Texas Intermediate (WTI) crude fell 18 cents, or 0.3%, to $61.77.
Rupee vs Dollar
The Indian rupee jumped 74 paise to 84.62 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.14% to 101.54 level.
(With inputs from agencies)
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