Indian equity benchmark indices posted mild losses on Tuesday morning, weighed down primarily by weakness in oil and gas stocks.
Cautious global cues and concerns over potential additional tariffs by the United States dampened investor sentiment, despite encouraging corporate updates that had raised hopes of stronger quarterly earnings.
As of 9:30 AM, the BSE Sensex slipped 246 points, or 0.29 per cent, to 85,193, while the NSE Nifty declined 70 points, or 0.27 per cent, to trade at 26,180.
The broader market indices performed largely in line with the benchmark indices.
The Nifty Midcap 100 was down marginally by 0.08 per cent, while the Nifty Smallcap 100 eased 0.02 per cent, indicating a lack of strong directional cues across market segments.
Market participants noted that immediate support for the Nifty lies in the 26,100–26,150 zone, while resistance placed in the 26,400–26,450 range.
A decisive move beyond these levels is likely to set the near-term trend.
Overnight, US markets rallied, largely ignoring the unfolding Venezuela crisis.
Analysts said falling crude oil prices, driven by expectations of increased supply from Venezuela, are being viewed positively by markets. They said the trend could be beneficial over the medium to long term.
However, experts cautioned that geopolitical surprises remain a key risk. Given the uncertain global backdrop, investors have been advised to remain cautious and consider increasing cash positions until clarity emerges.
The banking sector showed signs of strengthening, supported by robust credit growth, although challenges around deposit mobilisation persist.
Analysts believe that sustained loan growth could continue to support banking stocks in the medium term.
Meanwhile, Asian defence stocks surged for a second consecutive session, even as Asian markets traded mixed.
Investors across the region remained focused on geopolitical risks following recent US military action in Venezuela.
In Asian markets, China’s Shanghai Composite gained 1.14 per cent, while the Shenzhen index rose 0.79 per cent.
Japan’s Nikkei advanced 0.69 per cent, and Hong Kong’s Hang Seng Index climbed 1.68 per cent. In contrast, South Korea’s Kospi declined sharply by 3.99 per cent.
US markets closed mostly in the green in the previous session. The Nasdaq Composite rose 0.69 per cent, the S&P 500 gained 0.64 per cent, and the Dow Jones Industrial Average jumped 1.23 per cent.
On January 5, foreign institutional investors (FIIs) were net sellers of equities worth ₹36 crore.
In contrast, domestic institutional investors (DIIs) remained supportive, purchasing equities worth ₹1,764 crore, providing some cushion to the domestic markets.
Overall, analysts expect markets to remain range-bound in the near term, tracking global developments, crude oil prices, and upcoming corporate earnings.
Also Read: Sensex, Nifty Edge Lower As Global Geo-Political Tensions Weigh On Sentiment
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