Indices trade lower in early trade; breadth positive

The key equity benchmarks traded with moderate losses in early trade tracking weak global cues as uncertainty over the prospects of a US-Iran deal weighed on investor sentiment. Persistent geopolitical concerns and the lack of clarity over diplomatic developments kept investors cautious, limiting risk appetite in the domestic market.

Market participants are assessing a slew of Q1 FY27 earnings announcements, with sector- and stock-specific movements remaining in focus amid the ongoing earnings season. while keeping a close watch the progress of the monsoon. The Nifty traded below the 24,500 level.

Investors are awaiting the domestic inflation data scheduled for release on Wednesday, along with movements in crude oil prices and developments on the global geopolitical front for further cues on market direction.

IT, consumer durables and oil & gas shares advanced while private bank, PSU Bank and FMCG shares declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 354.43 points or 0.44% to 78,194.54. The Nifty 50 index fell 91.75 points or 0.38% to 24,489.20.

In the broader market, the BSE 150 MidCap Index declined 0.26% and the BSE 250 SmallCap Index added 0.26%.

The market breadth was positive. On the BSE, 1,641 shares rose and 1,551 shares fell. A total of 181 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,974.76 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,290.29 crore in the Indian equity market on 10 August 2026, provisional data showed.

Stocks in Spotlight:

Mahindra & Mahindra shed 0.38%. The auto major reported a strong business performance in July 2026. Total production increased 20.4% YoY to 1,02,000 units, while total sales rose 24.8% YoY to 1,03,000 units. Exports increased 47.4% YoY to 4,159 units.

KEC International declined 3.58% after the company reported a weak Q1 FY27 performance, with profit declining 41.6% YoY to Rs 73 crore from Rs 125 crore in Q1 FY26. Revenue increased marginally to Rs 5,024 crore.

ZEE Entertainment fell 1.12% after the company reported a weak Q1 FY27 performance, with profit declining 46.9% YoY to Rs 76.3 crore from Rs 143.7 crore in Q1 FY26. Revenue increased 4.5% YoY to Rs 1,907 crore.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.28% to 6.785 compared with the previous session close of 6.766.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.3800 compared with its close of 95.3050 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement rose 1.16% to Rs 1,54,931.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 9979.

The United States 10-year bond yield advanced 0.28% to 4.712.

In the commodities market, Brent crude for October 2026 settlement shed 1 cents or 0.01% to $87.71 a barrel.

Global Markets:

Asian traded in a mixed manner on Tuesday as uncertainty continued to prevail over the global inflation outlook.

Oil prices nearly flat at $87 as negotiations between the U.S. and Iran over a peace deal and the reopening of the Strait of Hormuz hit an impasse.

U.S. President Donald Trump on Monday responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the crucial waterway.

Earlier, Iran had called for Washington to meet conditions, including recompensing Tehran for the damage caused since the U.S. and Israel launched strikes on its territory more than five months ago.

Following this development, brent crude futures edged up to hit $88.00 per barrel and U.S. crude futures ticked up to $82.14, both the highest levels since July 31, after the contracts rallied roughly 5% on Monday.

The latest uptick in fuel costs raises the stakes for the U.S. July consumer price report due on Wednesday, where expectations are for a monthly rise of 0.1% in the headline reading and 0.2% for the core measure.

Any upside surprise could rekindle bets of a Federal Reserve rate hike next month, with the odds currently a coin toss.

Overnight on Wall Street, the Nasdaq and S&P 500 closed lower on Monday, with declines in Intel and other chipmakers, as investors became less confident about a deal to reopen the Strait of Hormuz.

The S&P 500 declined 0.06% to end the session at 7,753.12 points. The Nasdaq declined 0.32% to 26,605.36 points, while the Dow Jones Industrial Average declined 0.11% to 53,976.04 points.

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