Indices trade lower; European mrkt decline
Going ahead, investors will closely monitor further developments in the US-Iran conflict, movements in crude oil prices, the ongoing Q1 earnings season, corporate business updates, and the progress of the southwest monsoon for cues on the market's near-term direction.
Realty, PSU Bank and auto shares declined while pharma and metal shares advanced.
At 13:25 IST, the barometer index, the S&P BSE Sensex declined 482.92 points or 0.62% to 77,132.94. The Nifty 50 index fell 133.05 points or 0.53% to 24,080.40.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.63% and the BSE 250 SmallCap Index declined 1.11%.
The market breadth was negative. On the BSE, 1,445 shares rose and 2,667 shares fell. A total of 189 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 2.74% to 13.65.
In the commodities market, Brent crude for September 2026 settlement added $2.90 or 3.48% to $86.20 a barrel.
Economy:
India?s retail inflation breached the Reserve Bank?s target for the first time in 17 months, government data showed on Monday, setting the stage for interest rate hikes in an economy at risk from a prolonged West Asia conflict.
The consumer price index rose to 4.38% year-over-year in June, up from 3.93% figure that was recorded in May. Inflation was led by higher fuel and food costs, which rose amid Iran war-driven supply disruptions and a delay in seasonal rains.
The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) for the month of June was 5.32%, India?s Ministry of Statistics and Program Implementation said in a Monday release. Transport inflation rose 4.3% in June, quicker than the 1.75% rise in May.
India's wholesale price index (WPI)-based inflation rose to 9.87% in June 2026 from 9.68% in May 2026. According to the Ministry of Commerce and Industry, the increase in wholesale inflation was primarily driven by higher prices of food articles, mineral oils (including petroleum products), basic metals, and chemicals and chemical products.
The June 2026 wholesale inflation figures are based on the revised WPI series, with 2022-23 as the base year. The revised series, introduced by the government last month, aims to provide a more accurate representation of the current economic structure.
Gainers & Losers:
Bharti Airtel (up 2.02%), Cipla (up 1.66%), Hindalco Industries (up 1.42%), Sun Pharmaceutical Industries (up 1.31%) and Apollo Hospital Entrprises (up 1.28%) were the major Nifty50 gainers.
HCL Technologies (down 3.63%), HDFC Life Insurance (down 3.24%), Shriram Finance (down 2.67%), Indigo (down 2.65%) and Tata Motors Passenger Vehicles (TMPV) (down 2.19%) were the major Nifty50 losers.
Stocks in Spotlight:
HCL Technologies declined 3.63% after the IT major retained its FY27 revenue growth guidance, prompting concerns that enterprise technology spending remains subdued despite a strong quarterly performance. For the quarter ended 30 June 2026, the company reported a consolidated net profit of Rs 4,624 crore, up 20.3% year-on-year and 3.0% quarter-on-quarter. Revenue from operations increased 13.9% YoY and 1.8% QoQ to Rs 34,579 crore.
PDS surged 6.65% after the company announced that it had secured a multi-year Sourcing as a Service (SaaS) contract with the global sourcing arm of a leading French-headquartered supermarket group. Under the agreement, PDS will provide end-to-end sourcing and supply chain services through a dedicated operating subsidiary, supporting the retailer's textile sourcing strategy with a more agile sourcing model. The company expects to manage apparel sourcing valued at more than $250 million in annual free-on-board (FOB) volume.
Plastiblends India jumped 4.67% after the company reported 67.6% rise in net profit to Rs 14.95 crore on an 11% increase in revenue to Rs 221.61 crore in Q1 FY27 as compared with Q1 FY26.
EMS declined 2.67%. The company has emerged as the lowest bidder (L-1) for a sewerage project awarded by UP Jal Nigam (Urban), Varanasi, with an estimated order value of Rs 105.82 crore. The scope of work includes construction of a 10 MLD sewage treatment plant (STP) with co-treatment facility, sewage pumping station (SPS), boundary wall, staff quarters, site development, laying of rising mains, sewer network and sewer house connections.
Welspun Corp added 1.96% after the company announced the receipt of fresh large orders for supply of pipes for Oil & Gas export projects, from its India facility, cumulatively valued at approximately Rs 1,400 crore.
Khaitan Chemicals & Fertilizers fell 4.39% after the company reported a 49.04% year-on-year decline in standalone net profit to Rs 10.91 crore for Q1 FY27, compared with Rs 21.41 crore in the year-ago period. Revenue from operations declined 6.09% YoY to Rs 220.03 crore during the quarter.
Global Markets:
European market declined as higher oil prices again fueled investor fears of sticky inflation.
Asian markets advanced on Tuesday as investors shrugged off the ongoing US-Iran conflict. However, gains remained capped after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz.
The latest escalation came after Iran and the U.S. exchanged airstrikes over the weekend. Tehran targeted U.S. facilities in several Gulf countries and declared the Strait of Hormuz closed, though Trump disputed that claim on Sunday, saying the key shipping lane remained open to commercial traffic.
Trump on Saturday ordered airstrikes on Iran after Tehran attacked a commercial vessel transiting the strait.
Markets were also rattled by hawkish comments on Monday from Federal Reserve Governor Christopher Waller, who said the U.S. central bank may need to raise interest rates in the near term if coming data show inflation continuing well above the 2% target.
Overnight, stocks on Wall Street sold off and oil futures surged more than 9% as conflict between the United States and Iran re-ignited, once again throttling the flow of goods through the Strait of Hormuz.
The S&P 500 lost 0.79% to end the day at 7,515.34, while the Nasdaq Composite fell 1.55% to finish at 25,873.18. The Dow Jones Industrial Average settled down 138.37 points, or 0.26%, at 52,498.64.
All eyes now are on the U.S. CPI data that is due for release later on Tuesday, followed by comments from Fed Chair Warsh, who will deliver the central bank's semi-annual monetary policy report to Congress.
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