Geopolitical jitters from the US-Iran standoff sent Indian equities into a tailspin at the opening bell on Tuesday. Benchmark indices kicked off the session deep in negative territory, with the BSE Sensex dropping 165.65 points (0.21%) to 77,103.72 and the NSE Nifty falling 66.70 points (0.28%) to 24,052.60.
Banks and financials led the decline, as Nifty Bank slumped 258 points (0.47%) to 54,619. Sectors like Financial Services, Autos, Realty, Infrastructure, and Consumer Durables joined the losers’ club. Meanwhile, defensive pockets in IT, Media, FMCG, and Energy sectors registered gains, offering a silver lining.
In the Sensex pack, technology leaders Infosys and TCS, along with ITC, HUL, Tech Mahindra, and Titan, climbed higher. The downside was dominated by auto giant Maruti Suzuki, lenders Bajaj Finance, ICICI Bank, HDFC Bank, Axis Bank, and Bajaj Finserv, plus L&T, Sun Pharma, Tata Steel, M&M, Trent, Power Grid, NTPC, Adani Ports, Indigo, and HCL Tech.
The bearish sentiment echoed worldwide. Australia’s ASX and Hong Kong’s Hang Seng opened lower, with Bangkok and Jakarta also in the red. Japanese and Chinese markets were shut for national holidays, and Wall Street ended Monday on a sour note.
At the heart of the turmoil: President Trump’s bold claim that US naval forces obliterated seven Iranian fast-attack boats harassing vessels in the Strait of Hormuz. Tehran has not responded directly but reaffirmed its dominance over the vital oil chokepoint.
Oil markets reacted counterintuitively, with Brent crude sliding 2.02% to $104.3/bbl and WTI down 1.12% to $113.2/bbl, as traders bet against near-term supply shocks amid softening global demand.
This early weakness underscores the market’s hair-trigger sensitivity to Middle East flashpoints. Traders are bracing for volatility, eyeing potential escalations that could amplify the sell-off or trigger safe-haven flows into gold and the dollar. Keep an eye on oil prices and diplomatic wires for clues on the next move.
