Sensex, Nifty Drop 0.4% as Crude Rally Stirs Geopolitical Jitters

Indian benchmark indices opened lower Tuesday, with the Sensex falling 320 points and the Nifty slipping 94 points, as a jump in crude oil prices tied to Strait of Hormuz tensions soured risk appetite.

The 30-share BSE Sensex traded at 78,204.40 in early deals. The 50-share NSE Nifty sat at 24,490.85.

InterGlobe Aviation, Axis Bank and UltraTech Cement led the Sensex decliners. Titan, HCL Tech and Tech Mahindra bucked the trend.

Brent crude edged down 0.13% to $87.61 a barrel, but the session's earlier push above $87 kept traders on edge. WTI crude hovered near $82.

"The renewed geopolitical uncertainty has triggered a rebound in crude oil prices, contributing to a weaker close on Wall Street and a subdued start across Asian markets," said Ponmudi R, CEO of Enrich Money.

He pointed to U.S. President Donald Trump's call for compensation from Iran and Tehran's conditions for reopening the Strait of Hormuz as factors clouding any near-term deal. "Until greater clarity emerges, markets are likely to remain headline-driven, with investors reluctant to take aggressive directional positions," Ponmudi added.

Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said higher crude prices may cap broader market upside and keep pressure on oil-sensitive sectors. "Market participants are expected to adopt a wait-and-watch approach, with the domestic earnings season remaining the primary driver of stock-specific action," he said.

Asian markets were mixed. South Korea's KOSPI edged higher. Shanghai's SSE Composite and Hong Kong's Hang Seng both slipped.

Foreign institutional investors bought equities worth ₹1,974.76 crore Monday, exchange data showed.

HST Wealth is not affiliated with HST (Host Hotels & Resorts), which carries an Alpha Score of 63/100 (Moderate) in the Real Estate sector. Infosys, an early gainer Tuesday, scores 57/100 (Moderate) in Technology.