- US launched fresh strikes on Iran, escalating regional tensions.
- Geopolitical concerns drove crude oil prices higher globally.
- Indian, Asian, and US markets all closed lower.
The Indian benchmark indices witnessed losses on Tuesday as the Sensex tumbled over 560 points to close at 77,054 and the NSE fell 158 points to close at 24,052 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks such as Bharti Airtel, Sun Pharmaceuticals, Tata Steel, TCS and Adani Ports. Meanwhile, the laggards included stocks like PowerGrid, Reliance, Bharat Electronics, ICICI Bank and Asian Paints.
In the broader markets, the Nifty Smallcap 50 and the Nifty Smallcap 250 declined 1.08 per cent as volatility rose. Sectorally, the Nifty Realty index fell 1.97 per cent and the Nifty Pharma index rose 1.03 per cent.
Previously, during the early morning session, the Sensex rang the opening bell near 77,100, bleeding more than 500 points, while the NSE Nifty50 opened trading just above 24k, taking a hit of 150 points, as of 9:15 AM.
US Launches Fresh Strikes On Iran
Geopolitical tensions escalated after the United States launched another round of strikes on Iran, marking the third consecutive night of military action as efforts to end the conflict appeared to lose momentum.
The US Central Command said the latest strikes began at 4:45 pm (2045 GMT) and were aimed at imposing further costs on Iranian forces while degrading their ability to target civilians and commercial vessels in the Strait of Hormuz.
The renewed offensive comes as prospects for a deal to end the conflict appear to be fading, bringing renewed attention to the strategically important waterway.
Trump Claims Iran’s Military Capabilities Weakened
US President Donald Trump claimed that American military action had significantly weakened Iran’s defence capabilities.
Speaking to Newsmax, Trump said much of Iran’s naval, air and weapons infrastructure had been destroyed and claimed the country had been brought “back to the Stone Ages to a large extent”.
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He further said Iran retained limited military capability and would no longer be able to intimidate the United States.
Strait Of Hormuz Remains In Focus
The Strait of Hormuz remained at the centre of investor concerns amid the renewed military escalation.
According to the US Energy Department, more than 8 million barrels of oil passed through the waterway on Sunday with assistance from the US military. The department said it would continue efforts to ensure oil supplies move despite heightened tensions.
However, shipping traffic through the strategic route has fallen sharply over the past week, keeping concerns over potential energy supply disruptions alive.
Crude Oil Prices Edge Higher
Oil prices rose after Trump said Washington would reinstate a blockade on Iranian shipping through the Strait of Hormuz.
The July crude oil futures contract was quoted at $84.11, up 0.97 per cent.
The rise in crude oil prices remains a key concern for Indian markets, with investors closely tracking energy costs amid the renewed tensions in West Asia.
Asian Markets Trade Lower
Most major Asia-Pacific markets declined on Tuesday as rising oil prices and geopolitical uncertainty weighed on investor sentiment.
Japan’s Nikkei 225 fell 0.69 per cent, while South Korea’s Kospi declined 1.78 per cent in early trade.
The weakness across regional markets reflected a broader risk-off sentiment as investors assessed the latest developments between Washington and Tehran.
Wall Street Ends In The Red
US markets also closed lower overnight.
The Dow Jones Industrial Average fell 0.26 per cent, while the S&P 500 declined 0.79 per cent.
The technology-heavy Nasdaq Composite dropped 1.55 per cent, marking the steepest decline among the three major US indices.
Gold Rises, Silver Slips
Precious metals traded on a mixed note amid the heightened geopolitical uncertainty.
Gold futures gained 0.42 per cent, while silver futures fell 0.3 per cent.
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