In the current economic climate, two trends stand out. The US economy continues to be strong, as reflected in employment data, labour market conditions, and ISM services. But markets are concerned about the positive data, as such an intense scenario could convince the Fed to remain hawkish.

India’s macro economy is improving steadily, with substantial tax revenues, good credit growth and lower crude oil prices. Part of the resilience in the Indian market comes from retail optimism and DII investments. That’s likely to persist despite elevated valuations. The bargain-hunting strategy has done well this year, and investors can continue the procedure.

India’s benchmark index was lower, with the Nifty around 18,600. The Sensex shed 292.95 points or 0.47% to 62,541.65, and the Nifty shed 83.50 points or 0.45% to 18,617.50. Some 1,318 shares advanced, 891 declined, and 137 were unchanged.

SBI Life Insurance, IndusInd Bank, HDFC Life, Adani Enterprises and Axis Bank were the major winners from the Nifty. At the same time, the losers were Hindalco Industries, HCL Technologies, Tata Steel, Infosys and ONGC.

The Indian rupee opened 12 paise lower at 81.91 per dollar from a previous close of 81.79. Benchmarks were weak in the pre-market session. At 9:02 am, the Sensex was down 704.83 points or 1.12% at 62129.77, and the Nifty was down 175.00 points or 0.94% at 18526.

Gold prices edged higher on Tuesday, driven by a slight pullback in the dollar, making dollar-denominated bullion cheaper for buyers holding other currencies. Spot gold was up 0.4% at $1,775.69 an ounce by 0224 GMT. US gold futures rose 0.3% to $1,787.10.

Oil prices edged higher on Tuesday after the European Union’s embargo on seaborne crude oil imports from Russia went into effect on Monday.

Brent crude futures were up 66 cents at $83.34 a barrel by 0108 GMT. West Texas Intermediate crude (WTI) was up 70 cents at $77.63 per barrel.

Futures fell more than 3% in the previous session after US services data raised concerns that the Federal Reserve could continue its aggressive tightening policy path.