Indian benchmark indices closed lower on Tuesday as global oil prices surged, impacting investor sentiment amid fresh geopolitical tensions in West Asia. The Sensex ended at 76,886.91, down 0.54%, while the Nifty closed at 23,995.70, down 0.40%. Adani Ports, ITC, Bharti Airtel, and Tech Mahindra were the top gainers, while HCL Tech, Axis Bank, ICICI Bank, and Infosys lagged.
Despite the decline in major indices, the broader markets displayed resilience, with the Nifty MidCap and Nifty SmallCap indices closing higher. Banking stocks faced pressure, with the Nifty PSU Bank and Nifty Bank being the top laggards. Conversely, oil-linked and commodity stocks saw gains, boosting the Nifty Oil & Gas and Nifty Metal sectors.
Reports of Iran’s proposal to reopen the Strait of Hormuz, a key waterway, without addressing its nuclear program immediately, added to market uncertainties. This led to a surge in Brent crude prices by 2.78% to $111.24 per barrel, as the US evaluates Iran’s proposal while the Strait of Hormuz remains closed. The spike in crude prices negatively impacted domestic equities due to concerns over inflation and its impact on India’s import-dependent economy.
The Indian Rupee traded weaker at around 94.54, down 0.38%, influenced by rising crude oil prices and continued Foreign Institutional Investor (FII) outflows, adding pressure on the currency.
