Market participants will closely monitor further developments in the US-Iran conflict, movements in crude oil prices, the ongoing Q1 earnings season and corporate business updates, as well as the progress of the southwest monsoon for cues on market direction.

Auto, PSU Bank and private bank shares declined while IT, FMCG and pharma shares advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 247.97 points or 0.31% to 77,352.17. The Nifty 50 index fell 72.55 points or 0.29% to 24,144.60.

In the broader market, the BSE 150 MidCap Index fell 0.26% and the BSE 250 SmallCap Index dropped 0.49%.

The market breadth was negative. On the BSE, 1,340 shares rose and 1,628 shares fell. A total of 175 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,062.27 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,171.70 crore in the Indian equity market on 13 July 2026, provisional data showed.

Economy:

India’s retail inflation breached the Reserve Bank’s target for the first time in 17 months, government data showed on Monday, setting the stage for interest rate hikes in an economy at risk from a prolonged West Asia conflict.

The consumer price index rose to 4.38% year-over-year in June, up from 3.93% figure that was recorded in May. Inflation was led by higher fuel and food costs, which rose amid Iran war-driven supply disruptions and a delay in seasonal rains.

The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) for the month of June was 5.32%, India’s Ministry of Statistics and Program Implementation said in a Monday release. Transport inflation rose 4.3% in June, quicker than the 1.75% rise in May.

Stocks in Spotlight:

ICICI Prudential Asset Management Company declined 1.43%. The company net profit rose 23.10% YoY and 25.45% QoQ to Rs 964.63 crore in Q1 FY27. Total income increased 18.10% YoY and 20.18% QoQ to Rs 1,745.02 crore in the June 2026 quarter.

HCL Technologies fell 1.85%. The company’s consolidated net profit increased 20.3% year-on-year and 3.0% quarter-on-quarter to Rs 4,624 crore in Q1 FY27. Revenue from operations rose 13.9% YoY and 1.8% QoQ to Rs 34,579 crore. In US dollar terms, revenue stood at $3.65 billion, up 3.0% YoY but down 0.9% QoQ. Constant currency (CC) revenue declined 0.5% QoQ and increased 2.6% YoY.

Sun Pharma Advanced Research Company (SPARC) declined 2.49%. The company has appointed Anil Raghavan as its managing director (MD) and chief executive officer (CEO) , effective August 11, 2026.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 0.76% to 6.784 compared with the previous session close of 6.733.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 96.1300 compared with its close of 95.6800 during the previous trading session.

MCX Gold futures for 5 August 2026 settlement jumped 0.49% to Rs 1,40,970.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.07% to 101.17.

The United States 10-year bond yield rose 0.26% to 4.622.

In the commodities market, Brent crude for September 2026 settlement jumped $1.53 or 1.84% to $84.83 a barrel.

Global Markets:

Asian markets traded lower and oil hit a one-month high in early Asian trading on Tuesday after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz.

The latest escalation came after Iran and the U.S. exchanged airstrikes over the weekend. Tehran targeted U.S. facilities in several Gulf countries and declared the Strait of Hormuz closed, though Trump disputed that claim on Sunday, saying the key shipping lane remained open to commercial traffic.

Trump on Saturday ordered airstrikes on Iran after Tehran attacked a commercial vessel transiting the strait.

Markets were also rattled by hawkish comments on Monday from Federal Reserve Governor Christopher Waller, who said the U.S. central bank may need to raise interest rates 'in the near term' if coming data show inflation continuing well above the 2% target.

Overnight, stocks on Wall Street sold off and oil futures surged more than 9% as conflict between the United States and Iran re-ignited, once again throttling the ⁠flow of goods through the Strait of Hormuz.

The S&P 500 lost 0.79% to end the day at 7,515.34, while the Nasdaq Composite fell 1.55% to finish at 25,873.18. The Dow Jones Industrial Average settled down 138.37 points, or 0.26%, at 52,498.64.

All eyes now are on the U.S. CPI data that is due for release later on Tuesday, followed by comments from Fed Chair Warsh, who will deliver the central bank's semi-annual monetary policy report to Congress.