Equity benchmarks opened higher on Tuesday, with the Sensex gaining 470 points to 75,666.21 and the Nifty adding around 60 points to 23,470 as of 10 am, recovering some ground after recent volatility.
Crude oil prices and ongoing geopolitical tensions in West Asia continued to fuel uncertainty in global markets, weighing on both domestic and foreign investor sentiment.
IT stocks emerged as major losers, contracting the early gains across the board.
The prevailing confusion in the market, driven by disruption of energy supplies amid the war in Iran, remains clearly visible.
Even investors with sizeable portfolios are refraining from advising fresh capital investments amid the looming Middle East crisis.
Analysts note that investor confidence is currently limited to precious metals and long-term holdings such as SIPs.
On Monday, the Nifty recovered 257 points, largely triggered by short-covering from oversold territory.
However, this short-lived relief is expected to fade due to massive selling by foreign institutional investors (FIIs), who offloaded equities worth ₹9,366 crore on a net basis yesterday.
The ongoing tensions and partial closure of the Strait of Hormuz have not only spiked crude oil prices but also dealt a blow to foreign investors’ interest in the Indian stock market.
Also read: Banks wrote off ₹9.75 lakh crore in loans over 11 years: Govt
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