Indian equity markets opened on a muted note on Tuesday, reflecting cautious investor sentiment amid elevated crude oil prices and ongoing geopolitical tensions in West Asia.
The BSE Sensex started trading under 73,300, crashing more than 800 points, while the NSE Nifty50 opened the session around 22,700, taking a hit of nearly 250 points, as of 9:15 AM.
In the pre-open hour, the Sensex climbed close to 300 points and inched closer to 74,400, around 9:01 AM. During the same time, the NSE benchmark fell almost 40 points and hovered above 22,900.
Early indicators had pointed to a weak opening. The GIFT Nifty was quoted at 22,885, down 172 points or 0.75 per cent, signalling subdued sentiment ahead of the session.
The weakness reflects lingering concerns over global developments, particularly rising oil prices linked to tensions in West Asia.
Crude Oil Remains Elevated
Oil prices continued to hover near the $110 per barrel mark, keeping inflation concerns alive.
Brent crude futures rose 0.4 per cent to $110.19 per barrel, while US West Texas Intermediate crude futures gained 0.8 per cent to $113.31.
The continued disruption around the Strait of Hormuz, a critical global oil transit route, has heightened fears of supply constraints and added pressure on global markets.
Trump’s Warning Adds To Market Jitters
Investor sentiment remained fragile after US President Donald Trump rejected a proposed ceasefire plan with Iran, calling it “not good enough” ahead of his deadline.
He warned of potential strikes on Iran’s power infrastructure if the Strait of Hormuz is not fully reopened, raising the risk of further escalation.
Iran, however, reiterated its stance of seeking a more permanent resolution, adding to uncertainty around the conflict.
RBI Policy Decision In Focus
On the domestic front, attention is firmly on the Reserve Bank of India’s Monetary Policy Committee (MPC) decision, scheduled for Wednesday.
Investors will closely track the central bank’s commentary on inflation, growth outlook and interest rate trajectory for cues on the market’s near-term direction.
Analysts expect markets to remain volatile, with sentiment closely tied to developments in West Asia, crude oil movements and global cues. Any signs of de-escalation could provide relief, while further escalation may keep markets under pressure.
Previous Session: Strong Rebound
In the previous session on Monday, benchmark indices staged a strong recovery after early losses.
The Sensex jumped 787.30 points, or 1.07 per cent, to settle at 74,106.85, while the Nifty rose 255.15 points, or 1.12 per cent, to close at 22,968.25.
The rebound was driven by value buying, easing crude prices and reports of potential ceasefire efforts in the Middle East.
