New Delhi: Indian equity markets opened lower on Tuesday as rising crude oil prices and renewed geopolitical tensions in the Middle East weighed on investor sentiment. The Sensex fell 278.64 points, or 0.37 per cent, to 75,854.17, while the Nifty 50 declined 36.05 points, or 0.15 per cent, to 23,743.10 in early trade.
The weakness comes amid growing concerns over disruptions to global energy supplies as tensions in the Middle East escalate. Brent crude was trading around $97.52 a barrel, while US crude stood near $92.95. Brent had touched around $97 earlier in the week, marking a near seven-week high and gaining roughly 8 per cent over the previous week.
For India, which imports around 85 per cent of its crude oil requirements, a sustained rise in oil prices can put pressure on inflation, the current account and the rupee. The Indian currency was also under pressure on Tuesday, falling to around ₹94.66 per US dollar in early trade as higher oil prices and geopolitical uncertainty reduced investor appetite.
Market participants are closely watching developments in the Middle East, particularly the potential impact on energy infrastructure and shipping routes. Iran has threatened retaliation against the United States amid the escalating confrontation, raising fears that the disruption could spread across the Gulf region.
The pressure was visible across several major sectors. Financial stocks, including HDFC Bank and ICICI Bank, declined in early trading, while Reliance Industries was also among the stocks weighing on the benchmarks. Mid-cap and small-cap indices were down as well, reflecting broader risk aversion.
Analysts said the market is also dealing with liquidity concerns because of a heavy pipeline of IPOs and offer-for-sale issues. Investors are additionally keeping an eye on upcoming US inflation data, which could influence expectations around the Federal Reserve's interest-rate policy.
Despite the weak broader sentiment, some stocks bucked the trend. GE Vernova T&D India jumped after winning a major contract, while defence stocks such as Bharat Electronics and Hindustan Aeronautics gained following government procurement approvals worth around ₹1.1 lakh crore.
Analysts expect volatility to remain elevated in the near term, with crude prices, geopolitical developments, foreign investor flows, the rupee and global inflation data likely to determine market direction. For the Nifty, immediate support is being watched around 23,700, with further downside possible towards 23,550 if that level breaks decisively.
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