Indian stocks fall as Hormuz tensions weigh on market sentiment
MUMBAI — Indian equity markets opened sharply lower Tuesday, with benchmark indices Sensex and Nifty each declining about 1 percent in early trade as geopolitical tensions in West Asia rattled investor sentiment.
The sell-off comes ahead of a deadline set by U.S. President Donald Trump related to reopening the Strait of Hormuz, raising uncertainty over a potential resolution to the ongoing conflict in the region.
The Sensex opened 372 points, or 0.50 percent, lower at 73,734, while the Nifty began the session at 22,838. Losses deepened shortly after, with the 30-stock index falling as much as 824 points, or 1.11 percent, to an intraday low of 73,282. The Nifty dropped 248.95 points, or 1 percent, to 22,719.30.
Selling pressure was broad-based, with financials, auto, real estate, and pharmaceutical stocks declining by up to 2 percent. Shares of InterGlobe Aviation (IndiGo), Eternal, Max Healthcare, Mahindra & Mahindra, Eicher Motors, Apollo Hospitals, and Dr. Reddy’s Laboratories were among the top laggards.
Market analysts said the recent price action suggests underlying resilience, supported by buying at lower levels, though caution remains warranted.
“The undertone remains positive, but sustainability depends on strength above key resistance zones. Traders should stay selective and wait for price confirmation near crucial levels before taking fresh positions,” analysts said.
Oil prices remained elevated, adding to market concerns. Brent crude rose as much as 1.69 percent to $111.63 per barrel, while U.S. West Texas Intermediate crude traded at $115.64, up about 3 percent.
Asian markets showed mixed trends, with Japan’s Nikkei trading flat, Hong Kong’s Hang Seng down 0.71 percent, and South Korea’s KOSPI up 0.40 percent.
In the United States, Wall Street closed modestly higher in the previous session. The S&P 500 gained 0.44 percent to close at 6,611.83, while the Nasdaq rose 0.54 percent to 21,996.34.
Foreign institutional investors remained net sellers in Indian markets on Monday, offloading shares worth Rs 8,167 crore, while domestic institutional investors provided some support with purchases totaling about Rs 8,000 crore. (Source: IANS)
