Sensex, Nifty decline as US-Iran tensions and high crude weigh on markets

Indian equity benchmarks Sensex and Nifty traded lower on Tuesday as renewed tensions between the United States and Iran, elevated crude oil prices and weak global cues weighed on investor sentiment.

The 30-share BSE Sensex initially slipped 30 points to 77,336.32, while the broader NSE Nifty declined 38.80 points to 24,179.50.

Losses deepened as trading progressed, with the Sensex falling 139.96 points to 77,235.23. The Nifty was down 66.75 points at 24,162.50.

HCL Technologies, Tech Mahindra, Maruti Suzuki, NTPC, Power Grid and Bajaj Finance were among the major laggards in the Sensex pack.

Trent, Adani Ports, ICICI Bank and Bharat Electronics were among the stocks trading in positive territory.

Crude oil prices remained elevated as markets assessed the implications of Washington’s expanded sanctions against Tehran. Brent crude, the international benchmark, rose 0.35 per cent to $92.49 a barrel.

Higher crude prices typically put pressure on Indian markets because the country depends heavily on oil imports. A sustained increase can add to inflation, widen the current account deficit and affect corporate margins.

Ponmudi R, chief executive of Enrich Money, said the US administration’s “Economic D-Day” sanctions represented an intensification of economic pressure on Iran. He added that the latest escalation followed the expiry of a 60-day ceasefire window, with no further negotiations currently scheduled.

Across Asia, South Korea’s Kospi, China’s Shanghai Composite and Hong Kong’s Hang Seng traded lower, while Japan’s Nikkei 225 moved higher. US markets had ended mostly in negative territory on Monday.

Hariselvan Radhakrishnan, founder and chief executive of HST Wealth, said Indian equities could experience greater volatility because of geopolitical uncertainty, weak global markets and monthly derivatives expiry-related positioning.

He cautioned that rollovers and adjustments ahead of the expiry could lead to sharper price movements, particularly towards the end of the trading session.

Foreign institutional investors purchased shares worth Rs 1,181.66 crore on Monday, according to exchange data.

In the previous session, the Sensex fell 171.72 points, or 0.22 per cent, to close at 77,369.11. The Nifty ended 32.95 points, or 0.14 per cent, lower at 24,219.05.

With PTI inputs