Markets Wobble Amid Middle East Tensions and Upcoming FOMC Meeting
Indian equity indices closed in the red on Tuesday due to concerns over Middle East conflicts and the Federal Reserve's meeting. The Sensex fell by 212.85 points, and Nifty was down by 93.10 points. Pharma stocks faced pressures from potential US tariffs, but the IT sector saw gains.
- Country:
- India
On Tuesday, Indian equity markets experienced moderate losses amid growing fears of intensified Middle East conflicts ahead of the Federal Open Market Committee (FOMC) meeting. By the close of trading, the Sensex had fallen by 212.85 points, or 0.26%, to settle at 81,583.30, while the Nifty dropped 93.10 points, or 0.37%, to 24,853.40.
Tech Mahindra and Infosys emerged as the top performers among Nifty's constituents, whereas Adani Enterprises and Sun Pharma led the laggards. Sectoral indices largely reported declines, except for Nifty IT, which ended positively. Nifty Pharma and Healthcare sectors were the biggest losers due to the threat of new US tariffs on pharmaceutical imports, as highlighted in SBI Securities' Market Closing Commentary.
In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices also suffered losses exceeding 0.70%, reflecting widespread market weakness. Despite index corrections, the India VIX fell by over 2%, indicating traders do not foresee an immediate volatility surge. Vinod Nair of Geojit Investments Limited noted market uncertainties stemmed from potential Middle East tensions and rising crude prices, impacting India's import-reliant economy.
(With inputs from agencies.)
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