Sensex, Nifty Fall as US-Iran Ceasefire Ends; Crude Oil Rises, IT Stocks Drag Markets
Indian stock markets remained under pressure on Tuesday as concerns over renewed tensions in the Middle East weighed on investor sentiment. The expiry of the temporary US-Iran ceasefire raised fears of further escalation, while a rise in crude oil prices and weakness in IT stocks added to the selling pressure. The Sensex opened 309 points lower at 77,418 and was down 310 points, or 0.24%, at…
Indian stock markets faced a challenging day on Tuesday as the temporary US-Iran ceasefire came to an end, sparking concerns of potential conflict escalation. The Sensex opened 309 points lower at 77,418, only to close 310 points, or 0.24%, lower at 77,400 by 10:30 am. Similarly, the Nifty 50 commenced at 24,223, eventually falling 66 points, or 0.28%, to 24,220.
The negative sentiment was further fueled by a surge in crude oil prices, which rose above $91 a barrel, and rising bond yields. Brent crude climbed above $91 a barrel as the hope for prolonging the US-Iran ceasefire waned. Such a rise in oil prices could heighten India's import bill and exert pressure on inflation, corporate profits, and economic growth.
IT stocks incurred significant losses in the early trading session, with the Nifty IT index slipping 1.24%. Major IT firms like Infosys declined 1.58%, while Asian Paints fell 1.59%. Other IT entities like HCLTech, Tech Mahindra, and TCS also traded lower. This weakness extended to other sectors as well, including Nifty Realty, which fell 1.60%, and financial and PSU banking indices, which declined.
Despite the overall market downturn, there were some positive outliers. Nifty Pharma, Healthcare, Auto, and Oil & Gas indices managed to post gains. However, investor caution was reflected in the rise of the India VIX to 11.39, signaling heightened market uncertainty.
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