Indian equity benchmarks ended Tuesday’s session under pressure, as escalating tensions in the Strait of Hormuz and a sharp fall in the rupee weighed heavily on investor sentiment.
While both benhcmarks, Sensex and Nifty, managed to recover the sharp losses incurred in the earlier half of the day, the indices failed to close in green.
The BSE Sensex closed the day just over 77k, crashing a little more than 250 points, while the NSE Nifty50 settled tradind near 24k, falling close to 100 points.
Markets had opened weak and struggled to gain momentum through the day, reflecting heightened caution amid global uncertainties and rising crude oil prices.
Geopolitical Tensions Drag Markets Lower
Renewed hostilities in the Strait of Hormuz emerged as the primary trigger for the day’s weakness.
Investor sentiment remained fragile as concerns mounted over potential disruptions to global energy supply routes. Analysts noted that developments in West Asia will continue to dictate near-term market direction.
“The market trend will be guided by the developments in West Asia particularly in the Strait of Hormuz. The resumption of hostilities in the Hormuz region and Brent crude again spiking to around $113 are headwinds for the market,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Rupee Hits Record Low, Adds To Selling Pressure
The domestic currency also added to the negative undertone, slipping to an all-time low of 95.40 against the US dollar during early trade.
A weaker rupee, combined with elevated oil prices, intensified concerns around imported inflation and macroeconomic stability, prompting investors to remain cautious.
Domestic Triggers Provide Limited Support
Political developments provided some underlying support, with the BJP securing a decisive mandate in West Bengal, winning 206 seats and ending the TMC’s 15-year rule.
However, this positive domestic backdrop was overshadowed by global uncertainties and crude oil concerns.
Previous Session Offered Gains
Markets had ended Monday on a positive note, with the Sensex rising 355.90 points to 77,269.40 and the Nifty gaining 121.75 points to close at 24,119.30.
The gains were driven by buying in blue-chip stocks and supportive domestic cues.
Markets are expected to remain volatile in the near term, with geopolitical developments, crude oil prices, and currency movements acting as key triggers. While domestic fundamentals remain supportive, sustained upside will depend on easing tensions in West Asia and stabilisation in global energy markets.
