Domestic equity markets saw a decline in early trading on Tuesday due to ongoing geopolitical tensions between the US and Iran. The Sensex dropped by 0.42%, around 330 points, hitting an intraday low of 76,973, while the Nifty fell by 0.38% or 93 points, trading at 23,999 initially. Nifty PSU Bank, Nifty Private Bank, Nifty Pharma, Nifty Healthcare, and Nifty FMCG indices were among the top losers, dropping by up to 1%.
On the other hand, Nifty MidSmall IT and Telecom, Nifty MidSmall Healthcare, Nifty Consumer Durables, and Nifty Realty indices were among the gainers. Notable losers among Nifty constituents included Eternal, Bajaj Auto, Axis Bank, HDFC Life, IndiGo, Bajaj Finserv, and Trent. Despite this, smallcap, microcap, and midcap indices showed resilience, trading up to nearly 1% higher, with Nifty Smallcap 250, Nifty Microcap 250, and Nifty Midcap 150 in positive territory.
The Sensex opened at 77,094.79, and the Nifty at 24,049.90. Market experts noted that the Nifty is range-bound, with support levels at 23,800–23,700 and resistance at 24,200–24,300. They highlighted the need for a move above 24,500 to sustain bullish momentum. Banking stocks are consolidating, while pharma and FMCG sectors may witness selective buying in the volatile market environment.
Global sentiment remained fragile as investors monitored the US-Iran conflict’s developments and its potential impact on energy markets and global trade. US President Donald Trump expressed dissatisfaction with Iran’s proposal, particularly regarding the country’s nuclear program. The conflict persists, affecting energy supplies from the region. Iran has reportedly offered to reopen the Strait of Hormuz if the US lifts its blockade and hostilities cease.
In the commodities market, Brent crude rose by 1% to $109.46 per barrel, while US West Texas Intermediate (WTI) increased by 1.22% to $97.55. Asian markets showed mixed performance, with Japan’s Nikkei down by about 1%, South Korea’s Kospi up around 1%, and Hong Kong’s Hang Seng trading nearly 1% lower. In the US, markets closed marginally higher, with the S&P 500 gaining 0.12% to 7,173.93 and the Nasdaq rising 0.20% to 24,887.10.
