Markets continued to decline in midday trading on Tuesday, with the Nifty 50 dropping to 23,517.35, a decrease of 298.50 points or 1.25%, marking the third consecutive session of losses. Concurrently, the Sensex was at 74,962.82, down by 1,052.46 points or 1.38%. Both indices opened lower following a gap-down start and progressively fell further, dipping below the crucial support level of 23,800, identified by analysts earlier in the day.
The information technology sector experienced significant selling pressure, with TCS emerging as the largest loser on the Nifty, falling 4.04% to ₹2,296.30. HCL Technologies and Infosys also registered declines of 3.93%, trading at ₹1,148.00 and ₹1,130.70, respectively. Additionally, Tech Mahindra saw a 3.72% drop to ₹1,403.20. Shriram Finance was among the top underperformers, down 3.38% to ₹943.00, signaling distress in financial stocks outside of the banking sector.
Ponmudi R, CEO of Enrich Money, a SEBI-registered trading and wealth-tech firm, remarked that the IT sector faced sharp reductions of over 3% at the outset due to ongoing pressure from weak global technology cues and cautious investor positions.
On the brighter side, ONGC stood out among gainers, rising 5.43% to ₹296.25 amid elevated crude oil prices. Hindalco climbed 1.64% to ₹1,040.30, while NTPC increased 0.52% to ₹395.00. Eicher Motors also saw a rise of 0.41% to ₹7,232.00, and Bharti Airtel inched up by 0.25% to ₹1,764.20, suggesting selective buying in the energy, metals, and telecom sectors despite the overall market pressure.
In currency and commodity markets, the USD/INR pair hovered around ₹95.30, nearing all-time highs. Analysts cautioned that a continuous rise above ₹95.50 could lead to levels around ₹96. On the commodity front, MCX Crude Oil was trading in the range of ₹9,400–₹9,500, with US oil prices nearing $99 and approaching the psychologically significant $100 level. Brent crude rose to $105 per barrel overnight following the collapse of ceasefire talks between the US and Iran, exacerbated by ongoing supply disruption concerns related to the Strait of Hormuz.
Safe-haven commodities also reflected market unease, with MCX Gold trading near ₹1,54,000, showing a cautiously bullish bias, while MCX Silver sustained above ₹2,80,000. Internationally, COMEX Gold approached the resistance range of $4,720–$4,760, and COMEX Silver traded between $86–$87, buoyed by geopolitical tensions.
The Bank Nifty opened at 54,179, exhibiting a negative trend, with the 54,000 level identified as critical near-term support. A drop below this could push the index toward the 53,800–53,600 range, while resistance is anticipated between 54,800–55,000 in the event of any recovery attempts.
Investors are awaiting the release of India’s April CPI inflation data, which is anticipated to influence the Reserve Bank of India’s policy direction. With India VIX elevated near 18.55 and the rupee approaching record lows, market sentiment is likely to remain fragile in the afternoon session, with geopolitical developments, crude oil fluctuations, and the inflation report expected to be key drivers as the trading day concludes.
