Market Open: Sensex Down 500 Pts in Morning Trade; Iran Rejects Us Ceasefire, Trump Warns of Deadline

Mumbai, April 7: Indian equity indices resumed the downturn from yesterday’s close on Tuesday, giving up early gains as oil prices spiked overnight and global risk sentiment turned choppy. The benchmark BSE Sensex was trading down 507 points or 0.68% at 73,599, while Nifty 50 eased 89 points or 0.39% to 22,878 as of 9: 27 AM after relinquishing nearly all of Monday’s rally. Iran-US tensions spiked again overnight after Tehran spurned Trump’s offer to ceasefire.

Asian Markets

Asian stocks traded mixed at the bell with Vietnam’s HNX 30 Index down the most across Asia at 2.84%, alongside South Korea’s Kospi, Hang Seng Index and Indonesia’s JSX Composite. Australia’s S&P ASX All Ordinaries Index was the best-performing market, rallying 1.30% ahead of the Easter holiday. The Shanghai Composite Index and Thailand’s SET Index were also firm, mitigating regional losses.

Middle East Conflict

Tensions escalated sharply overnight between Iran and the US. Iran dismissed a US ceasefire offer extended via intermediary Pakistan. Iranian Foreign Ministry spokesman Abbas Mousavi told reporters Sunday. Tehran is seeking “a permanent end to the war,” not merely a pause in hostilities, Iranian news agency IRNA reported. “If they don’t let us back intoIran could be taken out,” Trump said Monday morning during an interview. “You know what’ll happen to Iran if I think they’re not going to let us back in. They could be taken out. Quickly.” Trump had given Iran until Tuesday afternoon to call off its threats to the Strait of Hormuz.

Top Gainers and Losers

Top gainers among the Nifty 50 pack in early deals included Hindalco Industries (+3.56% to ₹960), Wipro (+1.86% to ₹200), ONGC (+0.87%), Tech Mahindra (+0.83%) and ITC (+0.75%). Top losers were Max Healthcare (-2.25% to ₹910), Eternal (-1.81%), IndiGo Air (-1.77%), Eicher Motors (-1.64%) and Mahindra & Mahindra (-1.58%). Axis Bank, SBI and Shriram Finance also traded between 1% and 1.4% lower.

RBI’s Norms for Bank BCs

Banking business correspondents who deliver financial services to last-mile customers in remote locations will come under tighter norms prescribed by the Reserve Bank of India (RBI) with effect from July 1. In a circular issued on Monday evening, the central bank proposed to categorise business correspondents (BC) under two models along with clarity on compensation framework, model conduct agreements and enhanced due diligence.

Gold Price

Gold prices continued their decline on Tuesday with prices of 24-carat gold dipping ₹27 to ₹15,066 per gram and that of 22-carat gold dropping ₹25 to ₹13,810 per gram.

Indian Rupee

Rupee could open flat-to-marginally higher near 93 per dollar today as RBI-driven arbitrage positions unwinding may offer some support but overall risk-off mood due to rising geopolitical tensions would limit upside.

Asian equity markets and US futures slid overnight after Trump warned Iran that unless they called off attacks on the Strait of Hormuz by 8 PM ET on Tuesday they could be attacked by the US military. Markets had finished strongly on Monday on ceasefire optimism, with the Sensex adding almost 780 points or 1% to close at around 74,100 and the Nifty climbing over 250 points or 1% to finish near 22,900. Bank Nifty was up nearly 2% as buying was concentrated in PSUs and private sector lenders with strong institutional buying.