Indian stock markets, including the Sensex and Nifty, saw declines in early trade as investors reacted to persistent geopolitical tensions between the US and Iran, coupled with significant foreign institutional investor outflows.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian equity benchmarks Sensex and Nifty experienced declines in early trade due to ongoing geopolitical concerns.
- The unresolved US-Iran situation, marked by repeated diplomatic setbacks, is a primary factor restraining global risk appetite.
- Persistent selling by Foreign Institutional Investors (FIIs), who offloaded equities worth Rs 3,911.68 crore on Monday, further impacted market sentiment.
- Major laggards in the Sensex included Bajaj Finance, Eternal, Bajaj Finserv, Power Grid, Larsen & Toubro, and NTPC.
- Experts note a continuing trend of sustained FPI selling in India and the market's underperformance with no immediate signs of reversal.
Equity benchmark indices Sensex and Nifty declined in early trade on Tuesday as investors remained concerned over the US–Iran situation, with diplomatic efforts to resolve the crisis encountering repeated setbacks.
Persistent foreign fund outflows also hit markets' sentiment.
The 30-share BSE Sensex declined 296.19 points to 73,971.30 in early deals. The 50-share NSE Nifty dropped 103.30 points to 23,272.25.
Gainers and Losers on Dalal Street
From the 30-Sensex firms, Bajaj Finance, Eternal, Bajaj Finserv, Power Grid, Larsen & Toubro and NTPC were among the biggest laggards.
Infosys, Tata Consultancy Services, Tech Mahindra, HCL Tech, Asian Paints and Mahindra & Mahindra were the gainers.
How Global Markets Impacted Indian Equities
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index quoted lower, while Hong Kong's Hang Seng index traded higher.
US markets ended in positive territory on Monday.
Expert View: What Investors Should Watch Next
"The US–Iran situation remains unresolved, with diplomatic efforts encountering repeated setbacks and no definitive breakthrough yet emerging.
"The prolonged tensions in the Middle East have kept global risk appetite restrained, prompting investors to adopt a more defensive stance amid concerns over regional stability and the broader implications for energy markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
US President Donald Trump said he persuaded Prime Minister Benjamin Netanyahu to call off the strike on Beirut, following which the Israeli leader "turned his troops around".
Trump made the announcement on Truth Social on Monday evening amid reports that the conversation between the two leaders was "heated" and the US president telling Netanyahu that he would have been in prison but for his intervention.
Trump's phone calls with Netanyahu came after Iran threatened to end the negotiations with the US over Israel's attacks on Lebanon.
FII Activity and Oil Prices
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,911.68 crore on Monday, according to exchange data.
Brent crude, the global oil benchmark, traded 0.73 per cent lower at $94.29 per barrel.
"The trend of sustained AI trade, new records for markets in US, South Korea and Taiwan, sustained FPI selling in India and India's underperformance are continuing with no immediate signs of reversal," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
