Indian benchmark indices started the day in the red zone on Tuesday due to declines in IT stocks following a resurgence in artificial intelligence (AI) stocks in the US. By 9:30 am, the Sensex was down by 159 points, or 0.19%, at 85,407, while the Nifty dropped 32 points, or 0.13%, to 26,139.
Major indices displayed mixed trends, with the Nifty Midcap 100 falling by 0.18% and the Nifty Smallcap 100 increasing by 0.07%. Notable gainers in the Nifty Pack included ONGC, Tata Steel, and NTPC, while losers comprised Max Healthcare, TCS, Tech Mahindra, Asian Paints, and ICICI Bank.
Sectoral indices on the NSE showed varied performance, with IT leading the losses with a decline of 1.21%. On the other hand, oil and gas, as well as metal sectors, were among the major gainers, rising by around 0.43% and 0.41%, respectively.
Analysts pointed out that the immediate resistance for Nifty is positioned at 26,300–26,350, with key support levels at 26,000–26,050. They highlighted two factors influencing the market in the short term: positive macro indicators and the resurgence of AI trade, which could potentially delay the expected FII outflow reversal.
Market experts noted a recovery in defence stocks with growth potential and resilience in the IT sector. Meanwhile, Asia-Pacific markets saw moderate gains on Tuesday following the AI trade boost in major Wall Street indexes.
In Asian markets, China’s Shanghai index rose by 0.34%, Shenzhen by 0.65%, Japan’s Nikkei by 0.02%, Hong Kong’s Hang Seng Index by 0.33%, and South Korea’s Kospi by 0.45%. The US markets closed mostly in the green zone, with Nasdaq up by 0.52%, S&P 500 by 0.64%, and Dow by 0.47%.
Investor focus remains on escalating geopolitical tensions between the US and Venezuela, along with delays in Russia-Ukraine peace talks. The recent killing of a Russian army general in a bomb attack has raised concerns over the peace process, supporting crude oil prices. On Monday, FIIs sold equities worth Rs 516 crore, while DIIs were net buyers of equities worth Rs 3,898 crore.
