- Indian markets declined as Sensex and Nifty closed lower.
- Global markets saw relief on potential Iran nuclear agreement.
- Crude oil prices dropped but remain elevated, impacting India.
The Indian benchmark indices declined on Tuesday as the Sensex fell over 114 points to settle above 75,200 and the Nifty declined more than 30 points to close trade at 23,618 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks like Infosys, HCLTech, TechMahindra, TCS and Eternal. Meanwhile, the laggards included stocks like Axis Bank, L&T, Bajaj Finserv, Tata Steel and Asian Paints.
In the broader markets, the Nifty Smallcap 50 gained 1.22 per cent and the Nifty 100 fell 0.01 per cent as volatility declined. Sectorally, Nifty IT jumped 3.23 per cent and Nifty Private Bank declined 0.74 per cent.
Previously, during the early morning session, the BSE Sensex started the session above 75,600, climbing close to 300 points, while the NSE Nifty50 opened trading over 23,700, inching up a little more than 50 points, around 9:15 AM.
Trump’s Iran Remarks Calm Global Markets
Global markets found some relief after US President Donald Trump said there was a “very good chance” of reaching a nuclear agreement with Iran.
Trump also said a planned US attack on Iran had been paused to allow negotiations to continue after Tehran reportedly submitted a fresh peace proposal to Washington.
The remarks helped ease fears of an immediate escalation in the region.
However, investors remain cautious amid recent attacks in the Gulf region and continuing uncertainty surrounding the reopening of the Strait of Hormuz, a key route for global energy supplies.
Crude Oil Prices Decline But Stay Elevated
Brent crude prices fell more than 2 per cent during Asian trading hours following signs of possible diplomatic engagement between Washington and Tehran.
Brent crude futures were trading around $109 per barrel, while US crude remained near $107.
Despite the decline from recent highs, crude prices continue to remain significantly above pre-war levels, keeping concerns over inflation and global economic growth alive.
For India, elevated oil prices continue to pose a major macroeconomic risk, affecting inflation, fuel costs and corporate profitability.
Asian Markets Trade Mixed
Markets across the Asia-Pacific region traded on a mixed note.
Japan’s Nikkei 225 gained around 1 per cent on improved risk appetite, while South Korea’s KOSPI declined nearly 2 per cent.
Broader Asian indices remained subdued as investors balanced easing geopolitical tensions against concerns over inflation and interest rates.
Investor focus has also shifted towards upcoming earnings from Nvidia later this week, which analysts believe could become a major test for the ongoing technology-driven rally in global equities.
Bond Markets Stabilise After Selloff
Global bond markets stabilised after facing sharp selling pressure in recent sessions.
US Treasury yields eased slightly after surging to multi-month highs earlier, as softer oil prices reduced immediate concerns over inflation.
However, markets continue to factor in the possibility of higher interest rates for a prolonged period due to energy-driven inflation risks.
OMC Stocks Remain In Focus
Shares of oil marketing companies are expected to remain under focus after petrol and diesel prices were increased for the second time within a week.
State-run fuel retailers raised petrol and diesel prices by around 90 paise per litre on Tuesday, ending a nearly four-year freeze on price revisions.
In Delhi, petrol prices rose to Rs 98.64 per litre, while diesel prices increased to Rs 91.58 per litre.
The latest hike follows a Rs 3-per-litre increase announced earlier this month amid rising global crude prices linked to the Iran conflict.
Oil companies are continuing to face significant losses despite partial fuel price revisions.
Inflation Concerns Continue To Rise
Higher fuel prices are expected to increase pressure on inflation.
India’s retail inflation rose to 3.48 per cent in April 2026, while wholesale inflation climbed to a 42-month high of 8.3 per cent, largely driven by rising energy costs.
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Analysts believe persistently elevated crude prices could widen India’s current account deficit and keep inflationary pressures elevated in the coming months.
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