Indian benchmark indices opened in negative territory on Tuesday as renewed military tensions between the United States and Iran triggered a sharp rise in crude oil prices, weighing on investor sentiment across sectors.
The BSE Sensex opened at 77,272.34 after closing at 77,616.40 on Monday and was trading 522 points lower, or 0.67%, at 77,093 by 10:20 am.
The NSE Nifty50 also witnessed selling pressure, opening at 24,068 after its previous close of 24,211. The index was down 143 points, or 0.59%, at 24,067 during early trade.
The weakness followed a subdued performance on Wall Street, where major US indices ended lower. The Dow Jones Industrial Average declined 0.3%, the S&P 500 fell 0.8%, and the Nasdaq dropped 1.6%.
Investor concerns increased after US President Donald Trump announced the reinstatement of a naval blockade on the Strait of Hormuz, along with a proposed 20% levy on cargo passing through the route on non-Iranian ships.
The developments pushed Brent crude prices sharply higher to around $84-$85 per barrel.
Shipping activity through the strategic waterway also declined significantly, with only 14 vessels crossing on Sunday compared with 37 in the previous week, raising concerns over global energy supplies.
The Indian rupee faced additional pressure, weakening by 30 paise to close at 95.62 against the US dollar in the previous session.
As one of the world’s largest crude oil importers, India remains vulnerable to higher energy costs and supply disruptions.
Domestic inflation concerns also weighed on sentiment after retail inflation rose to 4.38% in June from 3.93% in May, moving above the Reserve Bank of India’s 4% target due to higher food and transport costs.
Meanwhile, the US 10-year Treasury yield climbed to 4.61%, increasing concerns over foreign portfolio investor outflows from emerging markets.
Among Nifty50 stocks, HCL Technologies was the biggest loser, falling 3.11% to ₹1,183.20. Shriram Finance declined 2.28%, IndiGo dropped 2.05%, Bajaj Finance slipped 1.91%, and Mahindra & Mahindra fell 1.48%.
However, some metal and energy stocks gained. Hindalco Industries rose 1.26%, ONGC advanced 0.76%, Tata Steel gained 0.66%, while Max Healthcare and Coal India also traded higher.
