Indian equity markets are likely to open lower on Tuesday, May 12, amid weak global cues and pressure across key sectors. Gift Nifty was trading about 48 points, or 0.20%, lower at 23,667, indicating a subdued start to domestic trading.
Domestic benchmark indices closed sharply lower on Monday amid broad-based selling pressure. The NIFTY 50 declined 1.49% to close at 23,815.85, while the BSE SENSEX fell 1.70% to settle at 76,015.28. Investor sentiment remained weak due to negative global cues and pressure in IT and banking stocks.
The decline in domestic equities on Monday was attributed to rising geopolitical tensions, particularly the diplomatic deadlock between the United States and Iran, which increased risk-off sentiment among investors.
US markets ended marginally higher on Monday. The S&P 500 closed 0.2% higher, while the NASDAQ 100 gained 0.3%. The energy sector outperformed, reflecting the impact of fluctuations in oil prices on market sentiment.
Asia-Pacific markets opened on a positive note on Tuesday. South Korea’s KOSPI index rose more than 2%, while Japan’s Nikkei 225 traded marginally higher. Markets in Hong Kong and Australia remained stable.
Crude oil prices advanced amid tensions in the Middle East. Both Brent crude and WTI crude registered gains, with WTI crude remaining above $98 per barrel. Higher crude prices could increase inflationary pressure and widen the current account deficit for import-dependent economies such as India.
Several corporate developments are expected to remain in focus during Tuesday’s session.
HFCL secured an optical fiber cable export order worth more than ₹183 crore.
Afcons Infrastructure won a railway project contract in Europe valued at more than ₹7,500 crore.
Bharat Forge signed a long-term contract with Embraer in the aerospace sector.
HG Infra Engineering secured a highway project in Maharashtra worth ₹3,900 crore.
Adani Ports and Special Economic Zone announced the resignation of its CEO (Ports).
Munjal Auto Industries received a new order from Honda.
Activity in startup and technology-related deals is also expected to remain in focus, including a major block deal linked to Groww.
Several companies are scheduled to announce their fourth-quarter earnings on Tuesday, including Dr. Reddy's Laboratories, Tata Power, Dixon Technologies, Nazara Technologies, Max Financial Services and Torrent Power.
Market participants are expected to monitor quarterly earnings, geopolitical developments, crude oil prices and global market trends for further direction during the trading session.
