Indian Stock Market Update

Market Trends

On Monday, the Indian stock market witnessed a sell-off session due to escalating US-Iran war tensions in the Middle East, which triggered a surge in global crude oil prices and heightened uncertainty across financial markets. The spike in crude oil prices above $100 per barrel raised fresh macroeconomic concerns for India, a major oil-importing economy, prompting broad-based selling across benchmark indices.

Volatility and Options

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Volatility surged alongside the decline, reflecting rising investor anxiety. India VIX jumped to 23.59, up more than 70% in a week as geopolitical risks intensified. Such a sharp rise in volatility signals elevated uncertainty and typically results in inflated options premiums. In such conditions, derivatives traders tend to adopt a cautious approach, as any sudden de-escalation in geopolitical tensions could quickly push volatility lower and compress option premiums sharply.

Gift Nifty Live Chart

The Gift Nifty live chart shows a gap-up opening, as the index is trading green with an over 80-point gain during the early morning session on Tuesday.

Market Outlook

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Expecting a gap-up opening for the Indian stock market today, Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said that Indian equity markets are poised for a positive start as global risk sentiment improves following signs that geopolitical tensions in the Middle East may be nearing de-escalation.

Global Market Trends

The US stock market staged a strong recovery overnight, with the Dow Jones Industrial Average closing nearly 200 points higher after crude oil prices reversed sharply lower. The rally followed comments from U.S. President Donald Trump suggesting that the conflict with Iran could be approaching its final stages.

Crude Oil Price

After skyrocketing to a new 52-week high of $119.43/barrel, WTI crude oil prices retraced sharply following G-7 intervention. By 7:25 AM on Tuesday, the WTI Crude Oil price is trading in the green, quoting around $84.50/barrel, logging an intraday loss of over 10% and a 30% loss from the 52-week high of $119.43/barrel set yesterday.

Gold and Silver Rates

After a challenging session on Monday, gold and silver rates today saw strong buying in the early-morning Asian markets. The COMEX gold rate today opened with an upside gap and touched an intraday high of $5,177.80/oz, logging an intraday gain of around 1.25%. Likewise, the COMEX silver rate today opened with an upside gap and touched an intraday high of $89.485/oz, logging an intraday gain of over 5.50%.

FII-DII Data

FIIs remained net sellers on Monday, selling out Indian shares worth ₹6,345 crore in the cash segment. However, DIIs remained net buyers by buying shares worth ₹9,013 crore. In index futures, FIIs sold shares worth ₹3,072 crore, whereas in index options, they sold shares worth ₹6,940 crore.