Domestic equity benchmarks traded lower in early deals on Tuesday as rising crude oil prices weighed on investor sentiment amid fading prospects of a US-Iran peace deal.
The Sensex declined 365 points, or 0.47 per cent, to 77,362, hitting an intraday low. The Nifty fell 76 points, or 0.31 per cent, to 24,211.
Sectorally, Nifty IT emerged as the biggest loser, declining more than 1 per cent. Nifty MidSmall IT & Telecom fell 0.62 per cent, while Nifty Realty declined 0.4 per cent.
Financial services, private banks, media, metals and FMCG indices traded marginally lower. In contrast, Nifty Auto gained 0.40 per cent, and PSU Bank rose 0.29 per cent.
Ahead of the market opening, analysts said the rise in Brent crude and US 10-year Treasury yields could weigh on equities in the near term.
The US 10-year bond yield has climbed to 4.73 per cent, potentially putting pressure on foreign institutional investor flows.
Analysts, however, said India’s resilient economy and signs of a turnaround in earnings growth could provide support to domestic equities. They added that domestic institutional investors, which have substantial funds, could buy into significant declines, while retail investors may use market corrections to gradually accumulate quality stocks for the long term.
Heightened geopolitical tensions are nevertheless expected to keep markets volatile.
Market selling intensified after reports that Iran could adopt a more offensive posture, while US President Donald Trump ruled out an extension of the ceasefire arrangement, raising concerns over potential disruptions to energy supplies.
Brent crude, the international oil benchmark, rose 0.60 per cent from the previous close to trade above $91 a barrel.
US West Texas Intermediate crude gained more than 1 per cent to $85.37 a barrel.
Also Read: Stock Market Today: Sensex Falls 281 Points, Nifty Slips 78 Points As IT Stocks Drag
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