Mumbai: Indian benchmark indices posted mild losses on Tuesday, dragged down by declines in oil and gas stocks. Despite strong corporate updates raising hopes of better quarterly earnings, concerns over potential additional US tariffs weighed on domestic markets.
As of 9.30 am, Sensex slipped 246 points, or 0.29 per cent to 85,193 and Nifty eased 70 points, or 0.27 per cent to 26,180.
Main broad-cap indices performed almost in line with benchmark indices, with the Nifty Midcap 100 down 0.08 per cent, while the Nifty Smallcap 100 shed 0.02 per cent.
Immediate support lies at the 26,100–26,150 zone, and resistance is placed at the 26,400–26,450 zone, market watchers said.
The US markets rallied overnight, ignoring the Venezuela crisis. As crude prices fall due to increased supply from Venezuela, the market appears to be betting that the Venezuela crisis will be positive in the medium to long term, analysts said.
However, geopolitical surprises are likely, so it is too early to decide, and investors should consider increasing their cash position, they added.
The banking sector has strengthened due to increasing credit growth, even though deposit mobilisation remains a challenge.
Asian defence stocks showed a strong surge for a second straight session, even as the region traded mixed, with investors assessing geopolitical risks after the US attack on Venezuela.
In Asian markets, China’s Shanghai index added 1.14 per cent, and Shenzhen gained 0.79 per cent, Japan’s Nikkei added 0.69 per cent, while Hong Kong’s Hang Seng Index inched up 1.68 per cent. South Korea’s Kospi declined 3.99 per cent.
The US markets were mostly in the green zone on the last trading day, even as the Nasdaq added 0.69 per cent. The S&P 500 gained 0.64 per cent, and the Dow moved up 1.23 per cent.
On January 5, foreign institutional investors (FIIs) sold net equities worth Rs 36 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,764 crore.
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Photo: Nitin Lawate/IANS
—IANS
