Indian equity benchmarks opened trading on a subdued note on Tuesday, tracking weak global cues and renewed geopolitical tensions in West Asia. The reversal followed an optimistic rally seen in the previous session.
The BSE Sensex started trading just above 76,900, crashing more than 350 points, and the NSE Nifty50 rang the opening bell below 24k, taking a hit of over 150 points, around 9:15 AM.
GIFT Nifty Signals Weak Opening For Nifty
Early indicators pointed to downside pressure, with GIFT Nifty trading at 24,041, down 165 points or 0.68 per cent.
In the pre-open session around 9:05 AM, the Sensex declined 170.52 points, or 0.22 per cent, to 77,098.88, while the Nifty slipped 42.05 points, or 0.17 per cent, to 24,077.25, signalling a cautious start to the session.
The negative trend reflects heightened global uncertainty, particularly around geopolitical developments and crude oil volatility, which continue to weigh on investor sentiment.
US-Iran Tensions Escalate Around Strait Of Hormuz
Geopolitical risks have intensified after fresh hostilities between the US and Iran near the Strait of Hormuz.
Reports indicate an exchange of fire despite an earlier ceasefire, alongside missile and drone attacks by Iran targeting regional assets, including incidents involving shipping routes. These developments have raised concerns about prolonged instability in a region critical to global energy supply.
Adding to tensions, US President Donald Trump warned of strong retaliation if American vessels are targeted, while also assuring protection for cargo movement through the Strait.
Crude Oil Spikes Above $115, Remains Elevated
Oil prices surged sharply in the previous session, with Brent crude jumping as much as 6.5 per cent to cross $115 per barrel amid renewed conflict fears.
Although prices eased slightly in Asian trade, Brent continued to hover at elevated levels near $113-114 per barrel. Persistently high crude prices remain a major concern for markets, given their impact on inflation, currency stability, and corporate margins.
Global Markets Weak, Asia Mixed
Global cues remained weak, with US markets ending lower overnight. The Dow Jones Industrial Average fell over 1 per cent, while the S&P 500 and Nasdaq Composite also closed in negative territory.
In Asia-Pacific, trading activity was muted due to holidays across several markets. Hong Kong’s Hang Seng declined more than 1 per cent, reflecting cautious sentiment.
In commodities, gold futures edged higher, benefiting from safe-haven demand amid geopolitical uncertainty. Silver, however, traded slightly lower, as mixed signals from global markets and rising yields kept gains in check.
Previous Session: Markets Rebound On Domestic Triggers
On Monday, domestic markets ended higher, snapping a recent losing streak.
The Sensex gained 355.90 points to close at 77,269.40, while the Nifty rose 121.75 points to settle above the 24,100 mark.
The rally was supported by buying in blue-chip stocks, improved sentiment following state election trends, and encouraging Q4 earnings. Stocks such as Adani Ports, Hindustan Unilever, Reliance Industries, and Larsen & Toubro led the gains. Broader markets also advanced, with midcap and smallcap indices posting modest gains.
Domestic Factors Provide Some Cushion
Analysts note that supportive domestic factors, including political clarity post elections, strong GST collections, and healthy auto sales data, could help limit downside risks.
However, persistent uncertainty around crude oil prices and geopolitical developments continues to cap upside potential.
Markets are expected to remain volatile with a negative bias in early trade, as investors balance strong domestic fundamentals against global headwinds.
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