Indian markets trade flat as fresh US strikes in Iran weigh on sentiment

Indian equity benchmarks traded largely flat on Tuesday morning after fresh US strikes in southern Iran unsettled investor sentiment and pushed global crude oil prices higher.

The latest military action reportedly targeted boats attempting to lay naval mines as well as missile launch sites, adding to concerns over escalating tensions in West Asia.

In early trade, the BSE Sensex slipped 150 points, or 0.20 per cent, to 76,339.29, while the NSE Nifty50 declined 45 points, or 0.19 per cent, to 23,986.40. The indices had opened at 76,224.14 and 24,004.10 respectively.

Despite the cautious mood, select sectoral indices managed to stay in positive territory. Information technology, chemicals, media, PSU banking and metal stocks registered modest gains during the session.

Nifty IT rose 0.61 per cent, while Nifty Chemicals advanced 0.58 per cent and Nifty Media gained 0.54 per cent.

On the other hand, consumer durables, healthcare, cement and realty shares faced selling pressure. Nifty Consumer Durables emerged as the worst-performing sector, falling 0.57 per cent, while healthcare, cement and real estate indices declined by up to 0.3 per cent.

Among individual stocks on the Nifty, InterGlobe Aviation fell more than 1 per cent and was among the top laggards. Other notable losers included SBI Life Insurance Company, Max Healthcare Institute, Titan Company, Bharti Airtel and Trent.

Broader markets, however, outperformed the frontline indices. The Nifty Smallcap 100 rose 0.59 per cent, while the Nifty Midcap 150 gained 0.13 per cent. Meanwhile, India VIX, the market’s volatility gauge, declined 1.43 per cent.

Market analysts said investors remain watchful of developments in West Asia, even as diplomatic efforts to de-escalate tensions continue. According to experts, the latest US “self-defence strikes” have dampened sentiment temporarily, though markets are not yet pricing in a major military escalation.

Analysts added that investor confidence has remained relatively resilient, with equities responding positively whenever there are signs of easing geopolitical tensions and softer crude oil prices.

They also noted that the strong rally in the previous session reflected optimism over the resilience of the Indian economy despite global uncertainties.

However, experts warned that sustained high crude oil prices could continue to exert pressure on inflation and the broader macroeconomic environment.

International oil prices moved higher on Tuesday, with Brent crude rising 1.17 per cent to $98.39 a barrel, while US West Texas Intermediate crude surged more than 3 per cent to $93.90 per barrel.

With IANS inputs