Sensex, Nifty trade higher despite global market weakness after US strikes on Iran; rupee slips

Indian benchmark equity indices Sensex and Nifty traded higher in early deals on Tuesday, bucking weakness in global markets after the US launched what it described as self-defence strikes against Iran. 

At around 9:30 a.m., the 30-share BSE Sensex was up 366.51 points, or 0.50 per cent, at 74,285.27. The NSE Nifty50 gained 85.70 points, or 0.37 per cent, to trade at 23,327.80. 

Top gainers at a glance

Among Sensex constituents, Hindustan Unilever (HUL), Reliance Industries, and Kotak Mahindra Bank were among the top gainers in early trade. Tata Steel, Adani Ports and NTPC, meanwhile, were among the laggards. 

The broader market also remained positive, with the Nifty MidCap index edging up 0.01% and the Nifty SmallCap index rising 0.25%. 

Investor sentiment remained cautious after the US launched self-defence strikes on Iran following the downing of an Apache military helicopter patrolling over the Strait of Hormuz. Iran has warned that it will respond to Washington's military action, raising concerns over a further escalation in regional tensions. 

Global markets

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted lower. US markets ended mostly lower on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,566.03 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex climbed 394.50 points (0.54%), to settle at 73,918.76. The Nifty ended 119.10 points (0.52%), higher at 23,242.10.

Rupee falls 15 paise

In the currency market, the rupee weakened by 15 paise to 95.56 against the US dollar in early trade on Wednesday as fresh escalations in the West Asia war lead to a spike in crude oil prices and pressurised the rupee. On Tuesday, the rupee appreciated 20 paise to close at 95.41 against the US dollar.

According to a report by Bajaj Broking, Gift Nifty indicates a negative start for the domestic equity market. The brokerage expects the Nifty Spot index to trade in the 23,000–23,400 range during the session. 

On Wall Street, equities ended Tuesday's trading session on a mixed and volatile note. While small-cap stocks and traditional value sectors managed to post modest gains, selling pressure in large-cap technology stocks capped broader market advances and limited upside in the major indices.