Indian equity markets traded flat on Tuesday following fresh US strikes in southern Iran targeting boats and missile launch sites. The Sensex stood at 76,339.29, down 150 points, while the Nifty slipped 45 points to 23,986.40 in early trade. Sectoral indices like IT, chemicals, media, PSU banks, and metal stocks were in positive territory.
Nifty IT rose by 0.61%, Nifty Chemicals gained 0.58%, and Nifty Media advanced 0.54%. On the downside, consumer durables, healthcare, cement, and realty indices faced pressure. Nifty Consumer Durables was the top sectoral loser, dropping by 0.57%, while Nifty Healthcare, Nifty Cement, and Nifty Realty declined up to 0.3%.
In the broader market, small-cap and mid-cap indices outperformed, with Nifty Smallcap 100 climbing 0.59% and Nifty Midcap 150 gaining 0.13%. The volatility tracker India VIX decreased by 1.43%.
Market experts mentioned that despite ongoing negotiations to resolve the West Asia conflict, there are no immediate signs of a resolution. The recent US “self-defence strikes” in southern Iran have temporarily affected sentiment, but the markets do not see it as the start of a new military escalation phase.
Investor risk appetite remains strong, with markets responding positively to signs of easing tensions and lower crude oil prices. Experts believe that resolving the conflict and further reducing crude oil prices could help alleviate macroeconomic pressures on the economy.
Meanwhile, crude oil prices increased, with Brent crude rising by 1.17% to $98.39 a barrel and US West Texas Intermediate (WTI) climbing over 3% to $93.90 per barrel.
