Indian shares declined in midday trading on Tuesday, with benchmarks tumbling below recent lows as oil prices surge towards $88, sparking concerns over inflation and currency pressure, amid cautious options activity and sectoral shifts.
Indian shares weakened in midday trade on Tuesday as a surge in Brent crude close to $87.9 a barrel weighed on sentiment, with the Nifty 50 down 133.30 points, or 0.54%, at 24,450.50 and the Sensex lower by 413.52 points, or 0.53%, at 78,128.92 around 12.45 pm, according to the market update. The move put both benchmarks beneath the lows of the previous two sessions, underscoring how closely traders are tracking oil prices and their implications for inflation, earnings and foreign-exchange pressure.
Sudeep Shah, head of technical and derivatives research at SBI Securities, said the fall followed the sharp rise in Brent and left the Nifty with immediate support in the 24,360-24,340 band. He placed resistance at 24,530-24,550 and warned that a break below 24,340 could open the way to 24,220-24,200, while a move above 24,550 could allow a push towards 24,700. On the Sensex, he identified support at 77,700 and resistance at 78,600.
Market breadth was firmly negative. On the BSE, 1,933 stocks advanced while 2,168 declined, with 233 unchanged. The Nifty’s advance-decline ratio stood at 13:37. Options activity also pointed to caution, with meaningful call writing at the 24,500 and 24,600 strikes and notable put open interest at 24,400 and 24,300, suggesting traders see those levels as near-term battlegrounds.
Sectorally, information technology held up best while private banks were the weakest. Dr. Reddy’s Laboratories led gainers, followed by Titan, Eicher Motors, Infosys and TCS. On the losing side, Max Healthcare dropped the most, while Tata Consumer Products, Apollo Hospitals, UltraTech Cement and SBI Life Insurance also lost ground. Ponmudi R, chief executive of Enrich Money, said firm crude, the unresolved Strait of Hormuz standoff and a weaker rupee were combining to drive broad-based selling. The rupee was trading around ₹95.4 to the dollar, and precious metals were firmer, with COMEX gold above $4,450 and MCX gold near ₹1,55,000. Investors were also watching quarterly results from Manappuram Finance, PI Industries, MRF, Zydus Life, Siemens India and Bata India for further stock-specific cues.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
