Indian equity markets traded lower on Tuesday, January 13, after an early advance faded amid geopolitical concerns linked to Iran and tariff-related remarks by US President Donald Trump. After opening with gains, benchmark indices slipped into negative territory as investors remained cautious ahead of global cues and third-quarter earnings announcements.
The BSE Sensex opened above the 84,000 mark at 84,079, crossing a key psychological level, but selling pressure emerged within minutes of the opening bell. At 9:37 am, the 30-share index was down 195.79 points, or 0.23 per cent, at 83,682.38.
The NSE Nifty 50 also retreated after a firm start. The index opened at 25,897 but slipped below the 25,750 level shortly thereafter. At 9:38 am, the Nifty was trading 60.40 points, or 0.23 per cent, lower at 25,729.85. Pressure on the index was led by oil and gas stocks and heavyweight constituents.
Market sentiment weakened primarily due to rising tensions involving Iran and the latest sanctions-related announcement by US President Donald Trump. Trump announced new measures against Iran, stating that any country conducting trade with Iran would face an additional 25 per cent tariff on all trade with the United States. He said the decision would take effect immediately, with no exemptions.
According to the Indian Embassy in Tehran, India is among Iran’s top five trading partners. India exports rice, tea, sugar, pharmaceuticals, artificial fibre, electrical machinery and artificial jewellery to Iran. Imports from Iran include dry fruits, organic and inorganic chemicals, and glassware. The tariff announcement raised concerns among Indian companies and investors, contributing to caution and profit-taking in the market.
Oil and gas stocks remained under pressure, with weakness seen in index heavyweights such as Reliance Industries. Investors expressed concerns that an escalation in Iran-related tensions could lead to volatility in crude oil prices, potentially impacting the energy sector.
Asian equity markets traded higher, with investors largely overlooking geopolitical tensions in Iran and Venezuela, as well as an ongoing probe involving US Federal Reserve Chair Jerome Powell. China’s CSI 300 index rose 0.54 per cent, Hong Kong’s Hang Seng advanced 1.32 per cent, South Korea’s Kospi gained 1.04 per cent, and Japan’s Nikkei jumped 3.22 per cent. The rally in Japanese equities followed reports that the ruling Liberal Democratic Party may dissolve the lower house this month to call a snap election in February.
Overnight, US markets closed at record highs. The S&P 500 gained 0.16 per cent, the Dow Jones Industrial Average rose 0.17 per cent, and the Nasdaq advanced 0.26 per cent.
Global investors are now focused on the release of US Consumer Price Index data for December, scheduled later in the day, which may provide cues on the Federal Reserve’s policy outlook.
Quarterly earnings are also expected to influence market direction. Companies scheduled to report third-quarter results on Tuesday include ICICI Lombard, ICICI Prudential Life, Tata Elxsi, 5paisa Capital, Just Dial, Bank of Maharashtra, Navkar Corporation, Oriental Hotels, Sigma Solve and Tokyo Plast International. Investors are also watching reactions to results from Tata Consultancy Services, HCL Technologies and Anand Rathi Wealth, which were announced after market hours on Monday.
Activity is set to continue in the primary market as well. Amagi Media Labs’ IPO opens for subscription in the mainboard segment, while Bharat Coking Coal’s IPO closes. In the SME segment, IPOs of GRE Renew Enertech and Indo SMC open on Tuesday, while Defrel Technologies’ issue closes. Shares of Gabian Technologies India are scheduled to list, drawing investor attention.
