- Indian markets opened cautiously, influenced by global tech stock weakness.
- India’s core sector growth slowed; US Fed hike concerns persist.
- Crude prices rebounded; US-Iran and trade discussions monitored.
Indian benchmark indices opened on a cautious note on Tuesday, with the BSE Sensex at 76,977, down 116 points, while the NSE Nifty 50 stood at 24,075, losing 27 points at 9:15 AM.
Market sentiment remained mixed as investors weighed easing crude oil prices and optimism surrounding developments in the Middle East against weak global cues and a broad sell-off in technology stocks. Traders also monitored fresh domestic economic data, which showed a slowdown in the growth of India’s eight core sectors.
GIFT Nifty Indicates Muted Start Amid Global Weakness
The GIFT Nifty indicated a tepid start for domestic equities. The futures contract was quoted at 24,121, largely flat, reflecting caution amid weakness in global equity markets following overnight declines in technology shares.
The subdued signal came after Indian equities recovered on Monday, supported by a sharp decline in crude oil prices and improving sentiment surrounding developments in the Middle East.
Meanwhile, the growth of India’s eight core sectors slowed to a seven-month low of 0.5 per cent in May 2026. The core sector growth stood at 1.8 per cent in April 2026 and 1.2 per cent in May 2025.
Pre-open Trends Show Mixed Undertone
During the pre-open session at around 9:02 AM, the Sensex traded at 77,157.96, rising 63.89 points or 0.08 per cent.
The Nifty, however, slipped 25.55 points, or 0.11 per cent, to 24,077.35, indicating a mixed undertone ahead of the opening bell.
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Asian Markets Track Wall Street Losses
Most Asian markets traded lower on Tuesday, tracking overnight losses on Wall Street.
Japan’s Nikkei 225 was down 0.48 per cent, while South Korea’s Kospi declined 2.5 per cent in early trade. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent.
Japan’s Nikkei also slipped 0.6 per cent, while South Korea’s Kospi was down around 2 per cent. Taiwanese equities, however, touched fresh highs.
Investor sentiment remained cautious amid expectations that the US Federal Reserve could still deliver additional interest rate hikes later this year.
US Markets Mixed As Tech Stocks Drag
US markets ended mixed overnight as technology stocks came under pressure.
The S&P 500 declined 0.37 per cent, while the Nasdaq Composite dropped 1.32 per cent amid losses in major technology stocks, including Alphabet.
The Dow Jones Industrial Average, however, rose 0.29 per cent, supported by gains in healthcare and industrial shares.
Focus On US-Iran Talks And Trade Developments
Investors continued to track developments surrounding US-Iran peace negotiations, which have contributed to optimism in global markets and lower crude oil prices.
At the same time, concerns remain over weak global market cues and indications that the US Federal Reserve could maintain a hawkish stance for a longer period.
Market participants are also watching developments on the trade front. US Trade Representative Jamieson Greer is expected to visit India this week for discussions with Commerce Minister Piyush Goyal as both countries work towards a bilateral trade agreement.
Any progress regarding tariff concessions or broader trade cooperation could influence market sentiment during the session.
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Crude Rebounds; Precious Metals Under Pressure
Brent crude prices rebounded on Tuesday morning, with the benchmark trading at $78.11 per barrel on the Intercontinental Exchange.
Oil prices had declined overnight after the US issued a 60-day licence authorising the production, sale and delivery of Iranian oil.
In precious metals, gold futures were trading 0.73 per cent lower, while silver futures fell 2.38 per cent.
Investors will continue to monitor global market trends, movements in crude oil prices, developments in US-Iran negotiations and progress in India-US trade discussions during the session. Market participants are also keeping an eye on signals from the US Federal Reserve, domestic economic indicators and the performance of global equity markets as trading progresses.
