Investors will closely monitor further developments in the West Asia conflict for cues on global risk sentiment and crude oil prices. The progress of the southwest monsoon and the ongoing Q1 FY27 earnings season will also remain key factors influencing market direction in the near term.

Metal, realty and pharma shares advanced while IT, PSU Bank and FMCG shares declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex declined 283.08 points or 0.36% to 77,433.77. The Nifty 50 index fell 72.80 points or 0.30% to 24,165.70.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index added 0.16% and the BSE 250 SmallCap Index rose 0.13%.

The market breadth was positive. On the BSE, 1,984 shares rose and 2,082 shares fell. A total of 203 shares were unchanged.

In the commodities market, Brent crude for September 2026 settlement declined 88 cents or 0.64% to $88.65 a barrel.

Economy:

India's core sector output growth accelerated to a five-month high of 5% year-on-year in June, up from 3.2% in May, supported by a sharp surge in iron ore production and sustained expansion in cement and electricity.

Iron ore production recorded the strongest growth at 43.9% year-on-year in June, followed by cement and electricity, both of which grew 9.8%. Steel output increased 4.6%, while coal production rose 1.4%.However, weakness persisted in the energy segment, with crude oil, natural gas and refinery products contracting 4.2%, 7.4% and 4.7%, respectively. Fertiliser production also remained subdued, declining 3.3% for the fourth consecutive month.

During the April–June quarter, cumulative core sector growth improved to 3.6% from 1% a year earlier, although growth under the revised series for FY26 stood at 3%, lower than 4.3% recorded in FY25.

Gainers & Losers:

Shriram Finance (up 2.48%), Ultratech Cement (up 1.15%), HCl Technologies (up 1.14%), Indigo (up 1.13%) and Kotak Mahindra Bank (up 1.05%) were the major Nifty50 gainers.

HDFC Bank (down 1.48%), Infosys (down 1.47%), Tata Consultancy Services (TCS) (down 1.32%) and Power Grid Corporation of India (down 1.32%) and Reliance Industries (down 1.29%) were the major Nifty50 losers.

Stocks in Spotlight:

SML Mahindra surged 5.54% after the company reported a 17.38% rise in standalone net profit to Rs 63.62 crore for the first quarter ended 30 June 2026, compared with Rs 54.20 crore posted in Q4 FY26.

Karur Vysya Bank surged 12.54% after the private sector lender reported a 44.92% rise in standalone net profit to Rs 755.70 crore for the quarter ended 30 June 2026, compared with Rs 521.45 crore in Q1 FY26. Total income increased 15.76% to Rs 3,491.21 crore in Q1 FY27 from the year-ago period.

Canara HSBC Life Insurance surged 6.91% after the insurer reported strong Q1 FY27 results. The company's consolidated profit after tax increased 20.15% YoY to Rs 28.14 crore in Q1 FY27. PAT declined 18.97% QoQ from Rs 34.73 crore in Q4 FY26. Total income rose 20.03% YoY to Rs 4,382.86 crore in Q1 FY27. On a sequential basis, total income increased 237.96% from Rs 1,296.86 crore in Q4 FY26.

One 97 Communications (Paytm) fell 2.82% after the company's board decided not to proceed with a proposed bonus issue, despite reporting strong Q1 FY27 earnings. The board said it had evaluated the proposed bonus issue from the perspective of long-term shareholder value and, after due deliberation, decided not to proceed with it at this stage. The company said it will continue to focus on compounding growth and profitability to create long-term shareholder value.

The digital payments and financial services company reported a consolidated net profit of Rs 220 crore in Q1 FY27, up 78.86% YoY and 20.22% QoQ. Revenue from operations rose 27.63% YoY and 8.13% QoQ to Rs 2,448 crore in the quarter ended 30 June 2026.

BlueStone Jewellery and Lifestyle soared 13.07% after the company reported consolidated net profit of Rs 11.13 crore in Q1 FY27 compared with a net loss of Rs 32.78 crore in Q1 FY26. Revenue from operations rose 48.85% year-on-year to Rs 733.19 crore in Q1 FY27.

Global Markets:

European market advanced as investors weighed a proposed 10-day U.S.-Iran ceasefire against fresh attacks on shipping in the Strait of Hormuz, while stronger-than-expected UK jobs data and lower June public borrowing offered a mixed picture of the domestic economy.

UK unemployment fell to 4.9% in the three months to May, down 0.1 percentage points on the quarter and below the 5% forecast, the ONS said Tuesday. Employment rose 148,000 on the quarter.

Asian stocks gained on Tuesday as mediation efforts in the Middle East pushed oil prices away from a one-month high.

Yemen's Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia, a move that could further disrupt energy supplies, amid attacks between the U.S. and Iran, even as efforts were being made to revive a fragile ceasefire.

A senior Iranian official was quoted by the media stating that Tehran had received a proposal from mediators for a 10-day ceasefire, intended to pave the way for a lasting agreement to end the ⁠war that began on February 28 with U.S.-Israeli attacks on Iran.

In other developments, investor focus this week will be on earnings from Alphabet and Intel, along with other firms, to gauge the impact of the war and whether the AI trade has more room to run given sky-high profit expectations for the second-quarter.

Strong earnings from Asian chip bellwethers Samsung Electronics and TSMC in recent weeks were not enough to satisfy investor expectations, underscoring the challenge facing the industry.

Overnight in the US, Wall Street's three major indexes finished lower on Monday while investors looked for moves toward Middle East de-escalation and waited for earnings reports due from major technology companies later in the week.

The Dow Jones Industrial Average fell 307.16 points, or 0.59%, to 51,839.26, the S&P 500 lost 14.41 points, or 0.19%, to 7,443.28 and the Nasdaq Composite lost ⁠12.17 points, or 0.05%, to 25,508.07.