Stock Market LIVE: GIFT Nifty signals flat open; Asian markets decline; Brent crude near $107

On Tuesday, September 29, financial markets opened in a downbeat mood as the Nifty 50 tumbled to 22,673.85, a decline of 0.47%, and the Sensex dropped to 72,385.06, marking a 0.53% decrease from their previous closes. The Nifty had started the day at 22,732.45, and the Sensex began at 72,633.68, both registering a sharper sell-off from Monday's losses; the Nifty had shed 360 points, and the Sensex lost 1,124 points.

This decline follows Brent crude prices hovering around $106 per barrel and the US 10-year Treasury yield hovering around 5.23-5.24%, the highest level since 2007. Dr. V K Vijayakumar, Geojit Investments' Chief Investment Strategist, attributed the global macro conditions to being unfavorable for equities, warning that high US growth and inflation could lead to another Federal Reserve rate hike.

Elevated crude prices might impact India's GDP growth and corporate earnings for the fiscal year 2027 (FY27). Broad-based selling was observed on Monday, with PSU Banks taking the brunt, with their sector index falling 3.15%. Bank Nifty ended the session at 54,471.65, down 1,108.75 points, or 1.99%, after breaking below the crucial 55,000 level.

India VIX surged 12.15% to 13.6375, reflecting heightened near-term volatility. Foreign institutional investors (FIIs) were net sellers for a third consecutive day, offloading equities worth over ₹5,353 crore, while domestic institutional investors provided some relief with net purchases of around ₹5,189 crore. Among Tuesday's early gainers in the Nifty 50, pharma stocks led the pack; Dr. Reddy's Laboratories surged 1.98% to ₹1,245.20, and Cipla increased by 1.02% to ₹1,397.80.

In the auto sector, Eicher Motors rose by 0.37% to ₹7,240.00. Coal India posted a minor gain of 0.19%, trading at ₹423.30. A number of stocks closed in the red, including Tata Motors, HDFC Life Insurance, Bajaj Finance, and retail conglomerate Trent. The ongoing US-Iran conflict added a geopolitical dimension to market uncertainty.

WTI is currently trading at $93 per barrel, while Brent remains above $105, continuing to fuel broader macroeconomic concerns. On the domestic front, a stronger-than-anticipated Index of Industrial Production growth in August, led by manufacturing and electricity output, provided a rare positive signal. However, analysts cautioned that its impact would be limited due to the overarching headwinds.

Technically, analysts anticipate the Nifty finding support at 22,650-22,550 and resistance at 22,950-23,000. Should the market enter temporarily oversold territory, a sharp rebound rally cannot be ruled out, though sustaining a level below 22,800 could continue to weaken sentiment. Hariselvan Radhakrishnan, Founder of HST Wealth, cautioned that the market structure remains sell-on-rise unless the Nifty climbs back to 23,500.

For Bank Nifty, a break below 54,000 could push the index to the 53,700-53,500 range, while reclaiming 55,000 would signal potential stabilization. Asian markets were also subdued, with the Nikkei 225 and KOSPI both falling over 0.5%.