Indian equity benchmarks opened on a cautious note on Tuesday as investors turned cautious following fresh US military strikes in Iran, which dampened hopes of a near-term breakthrough in the ongoing West Asia conflict.
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.
GIFT Nifty Signals Cautious Start For Dalal Street
Early indicators also pointed to a restrained opening for Indian equities. The GIFT Nifty was trading at 24,035, down 28 points, reflecting investor caution amid renewed geopolitical uncertainty and volatility in crude oil prices.
In the pre-open session around 9:01 AM, the Sensex was up 67.69 points, or 0.09 per cent, at 76,556.65. However, the Nifty slipped 63.15 points, or 0.26 per cent, to 23,968.55, indicating a subdued undertone in the broader market.
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Fresh US Strikes In Iran Revive Geopolitical Concerns
Market sentiment came under pressure after reports emerged that the United States launched fresh strikes in southern Iran on Tuesday morning, despite ongoing diplomatic engagement between Washington and Tehran.
According to reports citing US Central Command, the military action was carried out to protect American troops from Iranian forces operating in the region.
The latest escalation has once again raised concerns over the stability of the West Asia region and the future of negotiations linked to reopening the Strait of Hormuz, a critical global energy corridor.
Crude Oil Climbs As Peace Hopes Fade
Crude oil prices rebounded sharply after the latest military developments weakened expectations of a quick peace agreement.
Brent crude futures rose 2.31 per cent to around $98.36 per barrel in early trade, reversing part of Monday’s steep decline.
The rise in oil prices is likely to keep inflationary concerns alive for import-dependent economies such as India, while also influencing currency movements and corporate margins.
Asian Markets Mixed; Kospi Hits Fresh High
Markets across the Asia-Pacific region traded on a mixed note.
South Korea’s Kospi outperformed regional peers, climbing 2.59 per cent to touch a fresh high despite geopolitical uncertainty. In contrast, Japan’s Nikkei 225 and Hong Kong’s Hang Seng traded lower by 0.46 per cent and 0.67 per cent, respectively.
Also Read : What The Hormuz Crisis Could Mean For India’s Farmers, Fertilisers, And Food Prices
Gold, Silver Slip Amid Volatile Commodity Trade
Precious metals witnessed some weakness in early trade.
Gold futures declined 0.83 per cent, while silver futures dropped 2.5 per cent, as investors reassessed safe-haven positioning following fluctuations in crude oil and currency markets.
Markets Rally Over 1% In Previous Session
Indian equities ended sharply higher on Monday, supported by a correction in crude oil prices and optimism around US-Iran negotiations.
The Sensex surged 1,073.61 points, or 1.42 per cent, to settle at 76,488.96, while the Nifty climbed 312.40 points, or 1.32 per cent, to close at 24,031.70.
Banking and financial stocks led the rally, while a strengthening rupee and improved global sentiment further boosted investor confidence.
