Indian Equities Retreat

India’s BSE Sensex fell about 0.5%, down at 73,720 on Tuesday, retreating from gains in the previous session amid rising uncertainty over a US deadline for Iran to reopen the Strait of Hormuz. Oil prices climbed to around $110 per barrel and could spike further if the conflict escalates. Adding to market volatility, the Reserve Bank of India’s rate decision on Wednesday is in focus, with interest rates expected to remain steady at 5.25%, but guidance remains key. Meanwhile, metals stocks such as Hindalco Industries and Vedanta could benefit as geopolitical tensions tighten supply and push commodity prices higher. Financials, producer manufacturing, energy, and consumer non-durables stocks were among the decliners, while technology and non-energy posted modest gains. Among individual stocks, Reliance Industries (-0.6%), HDFC (-0.7%), Jubilant FoodWorks (-6.8%), and Eternal (-1.6%) were in negative territory, while Hindalco (+3.4%), Vedanta (+2.1%), and CreditAccess (+6.2%) gained.

India’s BSE Sensex closed about 1.1% higher at 74,107 on Monday, recovering from a weak start and extending gains for a third straight session. Investors weighed a report saying that the US, Iran, and other mediators were discussing terms for a potential 45-day ceasefire, which helped to lift market sentiment. Meanwhile, a final PMI survey showed India’s services sector growth moderated to a 14-month low in March. All sectors saw gains, with financials leading the way following robust business updates from private lenders. On Saturday, major banks including Axis Bank (3.9%), Bajaj Finance (2.9%), and HDFC Bank (2.7%) posted robust loan growth for the March quarter. At the same time, retailer Trent surged 7.9% after reporting steady double-digit revenue growth with continued store expansion. On the flip side, Reliance Industries slipped 3.4%, emerging as one of the key laggards, after analysts flagged hit to refining margins after the government imposed export tax on diesel last week.

The SENSEX Index rose 776 points or 1.06 percent on Monday to close at 74095 points. Leading the gains are Axis Bank (3.73%), Titan Company (3.61%) and UltraTech Cement (3.29%).