The Nifty Bank fell 255 points to 56,215, while the Nifty Midcap index shed 50 points to 61,963. The market, however, recovered from its lows as crude prices eased, with Brent slipping below $100 a barrel amid fresh developments around the Iran conflict.
Brent fell towards $99 after losing nearly 8% over the previous four sessions. Japan-based news agency Kyodo News reported that Iran had proposed reopening the Strait of Hormuz within seven days if the US eases its military pressure. The report added to hopes that a diplomatic route could emerge, taking some pressure off global energy supplies.
The India VIX, a gauge of market volatility, eased nearly 3% to around 10.9, suggesting that near-term anxiety in the market remained contained.
Among sectors, Nifty IT was the biggest loser, with technology stocks coming under pressure. Crude-sensitive stocks reacted to the sharp moves in oil, while IndiGo gained around 2%.
On the upside, Coal India was the top Nifty gainer, rising more than 3% after Morgan Stanley upgraded the stock. Meesho jumped nearly 10% after UBS raised its target, while Optiemus Infra surged 20% after expanding its pact with CMF by Nothing. Transrail climbed more than 15% on news of a capacity expansion.
Pace Digitek gained more than 7% after winning an order, while PI Industries rose 3% after receiving registration for its insecticide, described as India’s first discovered insecticide.
On the other side, Augmont and Symbiotec fell more than 3% each after reporting their first-quarter results. Tata Group stocks largely ended lower, with losses of up to 3%.The rupee, meanwhile, strengthened against the dollar, closing at 95.59, compared with Monday’s close of 95.82.
Gold, silver recover as oil cools
Precious metals also remained sensitive to the shifting inflation and rate outlook. Spot gold slipped below $4,300 and silver below $65 earlier in the session, weighed down by a stronger dollar and rising Treasury yields, before recovering as oil prices eased.
Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, said gold and silver had since recovered to around $4,320 and $65.40, respectively, tracking the decline in oil prices.
Markets are also closely watching signals from the US Federal Reserve this week. Minneapolis Fed President Neel Kashkari said inflation remains too high, while St Louis Fed President Alberto Musalem said further policy restraint may be needed to prevent inflation from staying substantially above the Fed’s 2% target.
Chicago Fed President Austan Goolsbee, meanwhile, cautioned that persistent supply shocks have been stronger and longer-lasting than usual. With several more Fed officials due to speak this week, their comments could offer fresh clues on the path for interest rates and, in turn, the dollar, Treasury yields and precious metals.