Equities in India dropped 284 points, or 0.3%, to 81,513 in morning trading on Tuesday, halting gains from the previous session. The BSE Sensex tracked a decline in US stock futures after US President Donald Trump called for the evacuation of Tehran amid rising tensions between Israel and Iran. Rising oil prices also weighed on sentiment, stoking inflation concerns, as India is the world’s second-largest oil importer. However, traders are awaiting the US Fed’s interest rate decision on Wednesday.
Limiting the decline were dovish remarks from the Reserve Bank of India Governor, which eased concerns over future rate hikes amid moderating inflation and solid economic growth. Pharmaceuticals, healthcare, auto, oil & gas, and consumer goods sectors were the main drags on the index. The Nifty 50 dropped 0.4% to below 24,900, with notable losses from Sun Pharmaceutical Industries (-1.9%), Bajaj Finance (-1.2%), IndusInd Bank (-1.0%), Tata Motors (-0.9%), and UltraTech Cement (-0.7%).
