Market Turmoil in Early Trade

Indian equity benchmark indices, Nifty50 and BSE Sensex, faced a significant downturn in early trade on Tuesday, following a robust rally the previous day. The Nifty50 slipped below the 24,750 mark, while the BSE Sensex was observed below 81,700. By 9:58 AM, Nifty50 was recorded at 24,729.80, marking a decline of 195 points or 0.78%. Similarly, BSE Sensex stood at 81,705.88, down by 724 points or 0.88%.

Market watchers will focus on crucial inflation data due Tuesday, including India's CPI and the US Core CPI figures. (AI image)

Looking Ahead: Inflation Data and Quarterly Results

After reaching a seven-month peak on Monday, the Indian stock markets are now eagerly awaiting the release of crucial inflation data. This includes India's Consumer Price Index (CPI) and the US Core CPI figures, which are due on Tuesday. Additionally, the market's attention is on the upcoming quarterly financial results from major corporations such as Bharti Airtel and Tata Motors, which are expected to have a significant impact on sector performance.

Global Market Reactions

US stock indices saw substantial gains on Monday, with the S&P 500 hitting its highest since early March. This positive momentum was partly due to a temporary tariff reduction agreement between the US and China, easing trade tensions that had been escalating since early April. Asian equities also advanced, mirroring the gains in the US markets, as investors welcomed the pause in the US-China trade dispute.

Commodities and Currency Movements

Gold prices remained steady on Tuesday, as the temporary suspension of US-China tariffs boosted risk appetite, diminishing the demand for safe-haven assets like gold. Oil prices, however, saw a decline after reaching a two-week high in the previous session, following the US-China agreement. The US dollar maintained its strength, buoyed by the positive investor response to the tariff agreement, which alleviated some concerns over a potential global economic downturn.

Investment Trends

Foreign portfolio investors were net buyers, purchasing shares worth Rs 1,246 crore on Monday, while domestic institutional investors bought shares worth Rs 1,448 crore net, indicating a mixed but overall positive investment trend in the Indian markets.