Nifty 50, Sensex Pare Losses as Pharma and Healthcare Shares Support Market

Market Update at 12:15 PM: The Nifty 50 and the Sensex pared losses from the day's low by noon, supported by gains in pharma and healthcare shares.

As of 12:00 PM, the Sensex fell 216.35 points, or 0.3 per cent, to 72,555.37, while the Nifty 50 declined 63.85 points, or 0.28 per cent, to 22,716.40.

Tata Motors Passenger Vehicles (TMPV), HDFC Life Insurance Company and Bajaj Finance were the Top Losers in the Nifty 50 index.

Sector-wise, the Nifty FMCG, Nifty Auto and Nifty Chemical indices declined the most, while the Nifty Pharma and Nifty Healthcare indices outperformed, limiting the broader market's losses.

Market Update at 09:30 AM: The Nifty 50 and the Sensex declined in early trade as rising oil prices continued to raise concerns over the inflation outlook.

As of 9:17 AM, the Sensex fell 225.79 points, or 0.31 per cent, to 72,545.93, while the Nifty 50 declined 63.95 points, or 0.28 per cent, to 22,716.30.

Tata Motors Passenger Vehicles (TMPV), HDFC Life Insurance Company, and Bajaj Finance were the top losers in the Nifty 50 index.

Among sectors, the Nifty Private Bank, Nifty Financial Services, and Nifty Bank indices declined the most. In contrast, the Nifty Pharma and Nifty Healthcare indices outperformed.

The IPOs of EverestIMS Technologies, Vans Electroengineerings, Papadmalji Agro Foods, and Black Opal Consultants opened for subscription on Tuesday.

SRIT India and Shah Investor's Home entered the second day of subscription on Tuesday. In the SME segment, Acme Universal Safezone 9, Shivchem Agro, and Pind Hospitality also entered the second day of their IPO subscription.

The IPOs of Snapdeal, Orient Cables, German Green Steel, and Runwal Enterprises entered the final day of subscription.

Additionally, the IPOs of Bench Mark, Shree TNB Polymers, Dudani Retail, Himalayan Solar, and Sai Urja Indo entered the final day of subscription.

Pre-Market Update at 7:40 AM: Indian equity markets are likely to begin Tuesday’s session on a cautious note as elevated crude oil prices, geopolitical uncertainty and higher U.S. bond yields continue to weigh on global risk sentiment. GIFT Nifty signalled a largely muted opening, while investors are expected to track foreign fund flows, currency movements, crude prices and developments surrounding the U.S.-Iran conflict.

GIFT Nifty on the NSE IX traded around 22,814.5, down 10 points, signalling a muted start for Dalal Street. Another early market quote placed GIFT Nifty at around 22,820.5, compared with the Nifty 50’s previous close of 22,780.25, indicating a marginally positive opening of around 40 points or 0.18 per cent. The mixed indications suggest that the domestic market could open relatively stable after Monday’s sharp decline, although global risks remain elevated.

The Nifty 50 declined 360.25 points or 1.56 per cent on Monday to close at 22,780.25, marking its lowest closing level in nearly six months. The index traded between 22,762.20 and 23,080.25 during the session amid broad-based selling. The Sensex fell 1.52 per cent to close at 72,771.72.

From a technical perspective, analysts have highlighted 22,650-22,700 as the immediate support zone for the Nifty 50. A decisive break below 22,700 could intensify selling pressure and potentially drag the index towards 22,400, where the trendline joining major lows of the past two years and the 200-week EMA are seen as important support levels. On the upside, 23,000 is expected to act as a strong resistance, with the broader resistance zone placed around 23,000-23,100.

India VIX, a measure of expected near-term market volatility, rose 12.1 per cent to settle at 13.64 on Monday, reflecting heightened volatility expectations.

Global markets remained under pressure. U.S. stocks declined in the previous session as Treasury yields moved higher and geopolitical concerns weighed on sentiment. The S&P 500 fell 0.77 per cent, the Nasdaq Composite declined 0.92 per cent and the Dow Jones Industrial Average dropped 0.67 per cent. The rise in U.S. bond yields remained a key pressure point for equity valuations.

Asian markets were mixed in early trade on Tuesday. S&P 500 futures were down 0.1 per cent as of 10:11 a.m. Tokyo time, while Hang Seng futures were little changed. Nikkei 225 futures declined 0.3 per cent, Japan’s Topix fell 1.7 per cent and Australia’s S&P/ASX 200 rose 0.1 per cent. Euro Stoxx 50 futures gained 0.1 per cent. Another early market update indicated that Japan’s Nikkei 225 was down around 0.4 per cent, South Korea’s Kospi declined around 0.5 per cent and Australia’s ASX 200 gained around 0.2 per cent. Live Hang Seng and Shanghai Composite levels could not be independently verified at the time of writing.

European markets also ended the previous session under pressure amid concerns over higher oil prices and global growth risks. Live closing data for the FTSE, DAX and CAC was not independently verified before publication.

The key global trigger remains geopolitical uncertainty surrounding the U.S.-Iran conflict. Concerns over possible disruption to crude oil supplies have pushed oil prices higher, raising inflation risks for oil-importing economies such as India. Higher energy prices could also affect corporate margins in fuel-sensitive sectors, including aviation, paints and oil marketing companies.

Brent crude traded around USD 105.91 per barrel, gaining 0.6 per cent, while WTI crude was around USD 93.32 per barrel, up 0.8 per cent. Oil prices rose for a second consecutive session as concerns over Middle East supply disruptions outweighed signs of recovering crude exports from the region.

Gold remained firm amid geopolitical uncertainty but stayed near a more than seven-week low as investors assessed the possibility of the U.S. Federal Reserve keeping interest rates higher for longer. COMEX gold was around USD 4,154 per ounce, while silver traded near USD 61.13 per ounce. Domestic 24-carat gold prices were around Rs 1,47,010 per 10 grams.

The Dollar Index was around 101.25, reflecting continued dollar strength. The Indian rupee depreciated 28 paise to close at Rs 96.03 against the U.S. dollar on Monday, according to one market update. Another quoted closing level was Rs 95.98. The currency remained under pressure from risk-off sentiment, higher crude prices and foreign fund outflows after the U.S. rejected a deal proposal from Iran, reducing hopes of reopening the Strait of Hormuz.

The U.S. 10-year Treasury yield remained around 5.24 per cent, keeping pressure on emerging-market equities. Higher U.S. yields can reduce the relative attractiveness of risk assets and remain an important factor for foreign portfolio flows into markets such as India.

Foreign portfolio investors continued their selling streak, offloading shares worth Rs 5,353.22 crore during Monday’s session. Domestic institutional investors, however, remained buyers, purchasing equities worth Rs 5,189.02 crore.

In the futures and options segment, SAIL and LIC Housing Finance were under the F&O ban on Tuesday. Securities enter the ban period when their open positions cross 95 per cent of the market-wide position limit.

Among stocks in focus, HDFC Bank remained under pressure amid broad-based weakness across financial stocks during Monday’s session. Yes Bank shares declined around 5.9 per cent amid market concerns relating to earnings and credit costs.

Borosil gained after Market commentary highlighted potential benefits from anti-dumping measures on Chinese imports. HCL Technologies remained in focus following acquisition-related developments, while NCC drew attention after announcing a Rs 1,076.71 crore water supply contract.

Adani Enterprises, Adani Power, Adani Ports and Adani Energy Solutions also remained in focus after SEBI allowed settlement of a public shareholding violation case involving the four Adani Group companies.

With the Nifty 50 below key short-term moving averages following Monday’s decline, market participants are likely to closely monitor the 22,700 support zone and the 23,000-23,100 resistance area. Crude oil prices, U.S. Treasury yields, geopolitical developments, currency movement and institutional flows are expected to remain important drivers for Tuesday’s session.

Disclaimer: The article is for informational purposes only and not investment advice.

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