- Indian markets opened lower, continuing Tuesday’s decline.
- US strikes in Iran pushed oil prices higher, raising concerns.
- Asian markets traded mixed amid renewed geopolitical uncertainty.
The Indian benchmark indices fell over 411 points to settle at 76,077 and the Nifty declined over 98 points to close trade at 23,933 at 3:30 PM.
Previously, during the early morning session, the BSE benchmark started trading below 76,300, tanking more than 200 points, and the NSE Nifty50 rang the opening bell a little under 24k, slipping 64 points, as of 9:15 AM.
Fresh US Strikes On Iran Push Oil Prices Higher
Market sentiment turned cautious on Tuesday after reports emerged that the United States launched fresh strikes in southern Iran despite ongoing diplomatic engagement between Washington and Tehran.
According to reports citing US Central Command, the strikes were carried out to protect American troops from Iranian forces operating in the region.
The latest escalation has once again intensified concerns over stability in West Asia and cast uncertainty over negotiations linked to reopening the Strait of Hormuz, a critical global energy corridor.
Crude Oil Rebounds Sharply
Crude oil prices surged after the renewed military action weakened expectations of a near-term peace agreement between the two sides.
Brent crude futures climbed 2.31 per cent to around $98.36 per barrel in early trade, recovering part of Monday’s sharp decline.
The rebound in oil prices is expected to keep inflation concerns elevated for import-dependent economies such as India, while also affecting currency movements and corporate profitability.
Asian Markets Trade Mixed
Equity markets across the Asia-Pacific region traded on a mixed note amid the renewed geopolitical uncertainty.
ALSO READ: India, US Sign Critical Minerals Pact To Strengthen Supply Chains Amid China Export Curbs
South Korea’s Kospi emerged as the strongest performer, rising 2.59 per cent to hit a fresh high.
However, Japan’s Nikkei 225 slipped 0.46 per cent, while Hong Kong’s Hang Seng declined 0.67 per cent in early trade.
Gold and Silver Witness Volatility
Precious metals weakened during early trading hours as investors reassessed safe-haven positioning amid volatile commodity and currency movements.
Gold futures fell 0.83 per cent, while silver futures dropped 2.5 per cent.
The fluctuations came as markets reacted simultaneously to changes in crude oil prices, geopolitical developments and shifting risk sentiment.
Indian Markets Had Closed Strongly Earlier
Indian benchmark indices had ended Monday’s session with strong gains, aided by easing crude oil prices and optimism surrounding US-Iran negotiations.
The Sensex rallied 1,073.61 points, or 1.42 per cent, to settle at 76,488.96, while the Nifty gained 312.40 points, or 1.32 per cent, to close at 24,031.70.
ALSO READ: Retirement Planning: How SWPs Create A Monthly Income From Mutual Funds
Banking and financial stocks led the rally, supported by a strengthening rupee and improved global market sentiment.
