Sensex, Nifty End Lower As West Asia Tensions Weigh On Market Sentiment

Indian equity benchmarks closed in negative territory on Tuesday as escalating geopolitical tensions in West Asia dampened investor confidence.

Selling pressure intensified throughout the trading session, reversing gains recorded in the previous session.

The Nifty declined by 86.50 points or 0.36 per cent to settle at 24,032.80. The Sensex fell by 251.61 points or 0.33 per cent to close at 77,017.79.

Sectoral performance remained weak, with banking, real estate, and oil and gas stocks emerging as the primary laggards. These declines reflected concerns regarding global economic growth and volatility in energy markets.

Market sentiment remained cautious following reports of renewed hostilities between the United States and Iran near the Strait of Hormuz.

The escalation occurred despite a ceasefire that had held for over a month.

The development raised fears of prolonged instability in a region critical to global oil supply chains.

In contrast, defensive sectors such as automobile and FMCG stocks demonstrated resilience, providing partial support to the indices.

Broader markets showed a mixed trajectory. The Nifty MidCap index advanced by 0.17 per cent, while the Nifty SmallCap index gained 0.28 per cent.

The Indian rupee extended its weakness, breaching the 95.25 level to trade near 95.30 against the US dollar.

Elevated crude oil prices above 100 dollars per barrel continued to exert pressure on the currency.

Analysts indicated that near-term market direction will remain sensitive to geopolitical developments and corporate earnings. They added that resistance may emerge near 94.70, while immediate support stands at 95.50, with investors closely monitoring upcoming US economic data for further direction.

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