Benchmark indices Sensex and Nifty remained highly volatile in Tuesday’s trading session. Investors remained cautious amid ongoing geopolitical tensions in West Asia and ahead of the Reserve Bank of India’s policy decision.
The BSE Sensex settled the session around 76,400, rallying more than 500 points, while the NSE Nifty50 closed for the day near 23,100, climbing over 150 points, as of 3:30 PM.
Markets witnessed sharp swings through the day before settling with marginal gains. After opening weak, indices pared losses and briefly moved into positive territory, but failed to sustain momentum amid lingering uncertainty. The Sensex and Nifty traded in a narrow range for most of the session, reflecting a lack of strong directional cues.
Geopolitical Tensions Keep Sentiment Fragile
Investor sentiment remained subdued as market participants closely tracked developments involving the US and Iran.
Fresh concerns emerged after US President Donald Trump dismissed the proposed ceasefire plan as “not good enough” and reiterated warnings of potential strikes if the Strait of Hormuz is not reopened fully.
The ongoing standoff has raised fears of further escalation, keeping global markets on edge.
RBI Policy Outcome In Focus
Back home, traders largely stayed on the sidelines ahead of the Reserve Bank of India’s Monetary Policy Committee (MPC) outcome, due on Wednesday. Investors are awaiting clarity on the central bank’s stance on inflation and growth, especially amid global uncertainties and elevated crude oil prices.
Global Markets And Oil Prices
Global markets offered mixed signals. Asian indices showed a varied trend, while US markets had ended on a positive note in the previous session.
Despite this, domestic markets remained largely driven by geopolitical concerns and domestic triggers.
Crude oil prices continued to stay elevated amid fears of supply disruption linked to tensions in West Asia. Higher oil prices have kept inflation concerns alive and remain a key overhang for equity markets.
