The Indian equity markets on Tuesday opened on a cautious note amid the resumption of hostile skirmishes between Iran and the United States in the Strait of Hormuz, triggering fresh concerns over global energy supplies.
At 9:15 am, the Nifty 50 index opened 0.11 per cent, or 27 points, lower at 24,004.10 compared with 24,031.70 at the previous close, according to NSE data.
The BSE Sensex opened 0.34 per cent, or 264 points, lower at 76,224.14 compared to 76,488.96 at the previous close, reflecting cautious market sentiment.
However, after the muted start, the markets gained momentum as the Nifty climbed 0.11 per cent to 24,057.40 points, while the Sensex rose 0.09 per cent to 76,561.74 points in early trade.
Forex traders and investors in Asia were largely in a profit-booking mode after a massive surge in recent sessions, driven by shifting geopolitical tensions and renewed hopes of a peace deal between Iran and the United States.
Investors, however, remained cautious as reports on Tuesday suggested fresh clashes between Iranian IRGC forces and US naval assets.
Expectations have now shifted towards the ongoing negotiations in Qatar, with markets anticipating some relief in the coming days on signs of de-escalation.
On the investment flows front, foreign institutional investors (FIIs) turned net buyers on Monday, purchasing ₹821.75 crore worth of assets, snapping their recent selling streak.
Domestic institutional investors (DIIs) also bought ₹3,856.88 crore worth of assets during the session.
Also read: Rupee falls 17 paise to 95.43 against US dollar in early trade
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