Sensex, Nifty Slip on HDFC Bank Drag, Iran Risk

Indian benchmark indices opened lower on Tuesday, with the Sensex and Nifty slipping as HDFC Bank's disappointing margin outlook and rising geopolitical risk from the US-Iran conflict dampened investor sentiment.

The 30-share BSE Sensex dipped 58.89 points to 77,649.63 in early trade. The 50-share NSE Nifty fell 22.45 points to 24,216.05.

HDFC Bank declined for a second consecutive session after the lender's quarterly earnings disappointed on the margin front. The stock was among the top laggards on the Sensex, along with Reliance Industries, Axis Bank, Sun Pharma and Maruti.

Foreign institutional investors offloaded equities worth Rs 1,121.04 crore on Monday, exchange data showed. Persistent FII selling has added to the pressure on domestic equities.

Crude oil prices softened slightly, with Brent crude quoted 0.63% lower at $88.66 a barrel. The decline offered little relief.

"In the near-term the market will be unduly influenced by the trends in crude price," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. "Even though the softening of the Brent crude to about $88 level is a positive sign, the uncertainty is so huge that there is an upside risk to crude price. This will weigh on markets."

Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said the combination of external headwinds had reinforced a risk-off mood, limiting investors' appetite for equities.

Tech Mahindra, UltraTech Cement, Asian Paints and HCL Tech were among the gainers on the Sensex.

Asian markets traded mixed. South Korea's KOSPI rebounded 3.68%, Japan's Nikkei 225 climbed 2.41% and Shanghai's SSE Composite gained 0.62%. Hong Kong's Hang Seng was marginally higher.

HDFC Bank carries an Alpha Score of 45 out of 100, a Mixed label from AlphaScala's proprietary scoring system, reflecting the stock's recent underperformance against sector peers.