Market under pressure; FMCG shares drop for 2nd day

The key equity indices continued to trade with modest losses in mid-morning 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 activity was also influenced by the weekly expiry of NSE derivatives contracts.

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 hovered below the 24,450 mark.

Investors are closely tracking the domestic inflation data due on Wednesday, alongside crude oil price movements and developments on the global geopolitical front, for further cues on the market?s near-term direction.

FMCG shares declined for the second consecutive trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex declined 447.64 points or 0.57% to 78,094.80. The Nifty 50 index dropped 140.70 points or 0.58% to 24,441.90.

In the broader market, the BSE 150 MidCap Index declined 0.16% and the BSE 250 SmallCap Index added 0.24%.

The market breadth was negative. On the BSE, 1,923 shares rose and 2,040 shares fell. A total of 242 shares were unchanged.

Buzzing Index:

The Nifty FMCG index declined 0.74% to 48,998.65. The index declined 0.88% over the past two consecutive trading sessions.

Tata Consumer Products (down 1.78%), Nestle India (down 1.43%), Godrej Consumer Products (down 1.16%), Emami (down 0.95%), Marico (down 0.93%), Colgate-Palmolive (India) (down 0.6%), Hindustan Unilever (down 0.6%), ITC (down 0.53%), Dabur India (down 0.39%) and Radico Khaitan (down 0.15%) advanced.

Stocks in Spotlight:

Bharat Electronics shed 0.30%. The company announced that it has secured additional orders worth Rs 541 crore since its last disclosure on 31 July 2026.

Escorts Kubota rose 1.46% after the company announced that its Agri Machinery Business Division will increase tractor prices across all its brands in August 2026.

IRB Infrastructure Developers rose 0.36%. The company reported that its IRB Group recorded an approximately 26% year-on-year (YoY) increase in toll revenue to Rs 798 crore in July 2026, compared with Rs 633 crore in July 2025.

Global Market:

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

Oil prices jumped 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 rises nearly $88 per barrel and U.S. crude futures ticked up to $82.42, 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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