Nifty slips below 23,800; rupee falls 9 paise to 94.85 against dollar

Global markets offered mixed signals. Wall Street ended lower overnight amid a broad selloff in technology and semiconductor stocks, profit-booking after a prolonged rally, and concerns over a potentially hawkish Fed. Asian markets, however, recovered 0.4% after tumbling nearly 3.8% in the previous session.

Brent crude futures fell around 0.5%, hovering near four-month lows as signs emerged that more oil tankers stranded in the Gulf since the start of the Iran conflict could resume movement through the Strait of Hormuz. While lower oil prices are supportive for India, concerns over higher U.S. interest rates continue to weigh on emerging markets by reducing their appeal to foreign investors.

Foreign portfolio investors (FPIs) remained net buyers on Tuesday, purchasing Indian equities worth ₹178.6 million, while domestic institutional investors (DIIs) bought shares worth ₹6.8 billion. Market participants said lower crude prices, measures to stabilise the rupee and efforts to attract foreign inflows have helped moderate overseas selling in recent weeks.

Traders also pointed to a revival in monsoon activity and expectations of improved corporate earnings as factors that could support a return of foreign investors, who have sold a record $29.84 billion worth of Indian equities so far this year.