Stock markets in India declined on Tuesday as benchmark indices Sensex and Nifty came under selling pressure amid renewed geopolitical tensions in the Strait of Hormuz region and uncertainty surrounding the fragile ceasefire between the United States and Iran.
Mumbai-based indices saw a volatile trading session, with the 30-share BSE Sensex falling 251.61 points, or 0.33 per cent, to close at 77,017.79. During intraday trade, it had dropped as much as 754.37 points to 76,515.03. Similarly, the 50-share NSE Nifty slipped 86.50 points, or 0.36 per cent, to end at 24,032.80.
Market sentiment was impacted by rising crude oil prices and a weakening rupee, which hit a record low against the US dollar. Traders remained cautious as tensions escalated in West Asia, with concerns over potential disruptions in global energy supplies.
Vinod Nair, Head of Research at Geojit Financial Services, said domestic equities witnessed volatility as post-election optimism faded and global sentiment weakened due to geopolitical risks. He added that higher crude prices continued to pressure the currency, although stronger-than-expected corporate earnings provided some support through selective buying.
Among Sensex constituents, major laggards included ICICI Bank, Tech Mahindra, Axis Bank, Bharti Airtel, and Larsen & Toubro. In contrast, Mahindra & Mahindra, UltraTech Cement, Bajaj Finance, and Bajaj Finserv were among the top gainers.
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In broader markets, mid-cap stocks slipped marginally, while small-cap indices recorded slight gains. Sector-wise, realty, banking, consumer durables, and financial services declined, while sectors such as IT, FMCG, power, auto, healthcare, and telecom saw mixed to positive movement.
According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, markets were pressured by escalating tensions in West Asia and a record-low rupee. He noted that recent geopolitical developments, including reported strikes on energy infrastructure in the United Arab Emirates port city of Fujairah, added to concerns over global oil supply stability.
Brent crude oil prices hovered around $113 per barrel, further weighing on investor sentiment. The Indian rupee slipped to a record low of 95.25 against the US dollar during the session.
Global cues were mixed, with Asian markets largely closed in some regions, European indices trading higher, and US markets ending lower in the previous session. Meanwhile, foreign institutional investors turned net buyers, purchasing equities worth ₹2,835.62 crore.
Earlier in the week, markets had briefly gained on strong political developments, including a decisive election outcome in West Bengal, but those gains were overshadowed by renewed global uncertainty and geopolitical risk factors.
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