MUMBAI, India — Indian benchmark indices closed lower Tuesday as a sharp rise in global crude oil prices and renewed geopolitical tensions in West Asia dampened investor sentiment.
The decline followed concerns over escalating friction involving the United States and Iran, which pushed investors toward caution.
The Sensex fell 416.72 points, or 0.54 percent, to close at 76,886.91, while the Nifty dropped 97 points, or 0.40 percent, to end at 23,995.70.
Among Sensex constituents, Adani Ports, ITC, Bharti Airtel, and Tech Mahindra were among the top gainers. HCL Tech, Axis Bank, ICICI Bank, and Infosys led the losses.
Broader markets, however, showed resilience and outperformed the main indices. The Nifty MidCap and Nifty SmallCap indices rose 0.28 percent and 0.42 percent, respectively.
Banking stocks remained under pressure, with the Nifty PSU Bank and Nifty Bank indices emerging as the biggest laggards. In contrast, oil-linked and commodity stocks advanced, lifting the Nifty Oil & Gas and Nifty Metal indices.
Market sentiment weakened after reports indicated that U.S. President Donald Trump was dissatisfied with Iran’s recent proposal aimed at easing tensions. According to reports, Iran offered to reopen the strategically important Strait of Hormuz but did not address its nuclear program, pending a de-escalation of hostilities.
The uncertainty kept oil markets volatile, with Brent crude rising 2.78 percent to $111.24 per barrel as the key shipping route remained closed while the U.S. reviewed Iran’s proposal.
Analysts said higher crude prices weighed on domestic equities, as rising energy costs are seen as inflationary and particularly negative for India, which relies heavily on oil imports.
Meanwhile, the Indian rupee weakened to around 94.54 against the U.S. dollar, down about 0.38 percent, pressured by rising oil prices and continued foreign institutional investor outflows. (Source: IANS)
