Nifty Falls Over 5.5% in September Series; Rising Crude Oil Prices and Bond Yields Weigh on Sentiment

Indian benchmark indices ended Tuesday’s session in negative territory, extending their fall for a second straight day as concerns over elevated crude oil prices and continued uncertainty around US-Iran developments kept investors cautious. However, the indices recovered significantly from their intraday lows, supported by buying interest at lower levels.

The Nifty 50 opened at 22,732.45 and initially moved higher to touch an intraday high of 22,753.25. However, selling pressure emerged during the session, dragging the index to a low of 22,569.65. The index later recovered over 140 points from the day’s low and traded in a narrow range during the second half of the session.

At the close, the Nifty 50 settled at 22,716.20, lower by 64.05 points or 0.28%. The Sensex declined 242.65 points or 0.33% to close at 72,529.07. The Bank Nifty underperformed, ending lower by 0.59%. Meanwhile, India VIX, the market volatility gauge, declined nearly 1.7% to 13.4.

Nifty Declines 5.67% in September Expiry Series

The Nifty 50 declined 5.67% during the September expiry series, marking a weak month for the benchmark index. The index witnessed sustained selling pressure amid concerns over global market volatility, elevated crude oil prices, foreign fund outflows and geopolitical uncertainties. While the Nifty attempted recoveries at lower levels, gains remained restricted as investors maintained a cautious approach. The broader market also remained under pressure.

Sectoral Performance: Nifty Metal Gains, Realty and IT Face Selling Pressure

Sector-wise, only three of the 11 major sectoral indices ended higher. The Nifty Metal index gained 0.78%, with Adani Enterprises rising more than 5%.

On the downside, the Nifty Realty index declined 2%, extending its recent weakness. All 10 constituents of the index ended lower, and the sector closed below key moving averages. 

Broader Markets Underperformed: Nifty Midcap 100 Index Closes Down by 1%

The broader market witnessed selling pressure, with the Nifty Midcap 100 index declining 0.99%, while the Nifty Smallcap 100 index fell 0.81%.

Market breadth remained tilted towards declining stocks on the NSE. Out of 3,679 stocks traded, 1,529 stocks advanced, 2,039 stocks declined, and 111 stocks remained unchanged.

A total of 66 stocks touched their 52-week highs, while 227 stocks hit their 52-week lows. Additionally, 131 stocks were locked in upper circuits, whereas 130 stocks hit lower circuits.

Brent Crude Stays Above $105 Despite Easing From Day’s High

Brent crude prices declined from the day’s highs but continued to trade above $105 per barrel on Tuesday as markets monitored developments around Middle East tensions and US-Iran negotiations. While Saudi Arabia’s East-West pipeline has partially resumed operations, providing an alternative supply route to the Strait of Hormuz, uncertainty over diplomatic progress kept risk concerns elevated. Traders remained focused on geopolitical developments and their potential impact on global oil supplies.

Rupee Slips Below 96/$, RBI Steps In to Limit Losses

The Indian rupee touched a two-month low, slipping below the key 96 per US dollar level amid pressure from elevated crude oil prices and broader dollar strength. The currency declined to an intraday low of 96.1475 before recovering slightly as the Reserve Bank of India (RBI) stepped in with intervention measures to limit further depreciation. The movement in the rupee remained a key factor for market participants as higher oil prices could impact India’s import bill.

European Markets Trade Higher in Early Session

European equity markets traded with a positive bias on Tuesday, with major indices recording modest gains. Germany’s DAX advanced 0.38% to 25,503.63, while the UK’s FTSE 100 gained 0.37% to 10,724.36. France’s CAC 40 also moved higher, rising 0.14% to 8,089.57.

US Futures Remain Mixed

US equity futures showed a mixed trend on Tuesday. Dow Jones futures declined 0.08% to 51,795, while S&P 500 futures slipped 0.04% to 7,744. Meanwhile, Nasdaq 100 futures gained 0.09% to 30,594, indicating relatively better sentiment towards technology stocks.