Indian benchmark indices started Tuesday’s session on a weak note as investors remained cautious amid rising geopolitical tensions in the Middle East, fresh US sanctions on Iran and elevated crude oil prices.
The approaching monthly expiry of Nifty 50 derivatives contracts also contributed to the cautious mood. At 10:30 am, the Sensex was down 204 points, or 0.26%, at 77,164, while the Nifty 50 declined 86 points, or 0.36%, to 24,132.
Most Sectoral Indices Trade In Red
Market breadth remained weak, with 14 of the 16 major Nifty sectoral indices trading lower. Nifty Metal fell 0.67%, followed by IT at 0.53%, Auto at 0.44%, Realty at 0.41% and FMCG at 0.34%. Oil & Gas, Consumer Durables, Pharma and Healthcare indices also declined.
Nifty Media and PSU Bank were among the few gainers.
Crude Prices, Iran Sanctions Remain Key Risks
WTI crude was trading at $85.44 a barrel, while Brent stood at $92.51. Higher oil prices remain a concern for India because of its dependence on imports.
Meanwhile, mid- and small-cap stocks displayed relative resilience, with investors continuing to focus on companies backed by positive corporate developments. Vijayakumar cautioned against chasing the broader-market rally at elevated valuations.
