Mumbai, Aug 25: Indian equity markets opened lower on Tuesday as investors turned cautious amid renewed tensions between the United States and Iran and a rise in global crude oil prices.
The Sensex fell about 30 points to 77,336.32 in early trading, while the Nifty 50 declined 38.80 points to 24,179.50. The selling pressure increased slightly later, with the Sensex trading around 77,235 and the Nifty near 24,162.
The weakness was visible across several major stocks. HCL Technologies, Tech Mahindra, Maruti Suzuki, NTPC, Power Grid and Bajaj Finance were among the notable laggards. On the other hand, Trent, Adani Ports, ICICI Bank and Bharat Electronics were among the stocks showing gains.
A major concern for investors is the movement in crude oil prices. Brent crude rose 0.35 per cent to around $92.49 a barrel, raising concerns about the impact of expensive energy on India, which depends heavily on imported crude oil.
Higher oil prices can put pressure on India’s import bill, the rupee and corporate costs. If crude remains elevated for a prolonged period, investors may also become more cautious about sectors that are sensitive to fuel and input costs.
Market sentiment was further affected by the latest escalation in the US-Iran standoff. Renewed geopolitical uncertainty has increased concerns about possible disruption to global energy supplies and has encouraged investors to adopt a more defensive approach.
Global markets also remained under pressure. South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were trading lower, while Japan’s Nikkei 225 moved higher. US markets had largely closed lower in the previous session.
Analysts expect volatility to remain high as investors also adjust positions ahead of the monthly derivatives expiry. Market movements could become sharper towards the end of the trading session as traders manage their positions.
Despite the cautious opening, foreign institutional investors remained buyers on Monday, purchasing equities worth ₹1,181.66 crore, according to exchange data.
The Sensex had ended Monday at 77,369.11, down 171.72 points, while the Nifty closed at 24,219.05, a decline of 32.95 points.
For investors, the immediate market direction is likely to depend on crude oil prices, developments in the US-Iran situation, global equity trends, foreign fund flows and the upcoming monthly expiry. With several uncertainties moving at the same time, traders are likely to remain cautious and expect increased swings in the market.