Share Markets See Red Amid US-Iran Tensions: Sensex Over 400 Points Down, Nifty Near 23,200

Most major Asian markets traded lower on Tuesday as investors reacted to the deteriorating geopolitical backdrop.

US markets managed to finish Monday's session in positive territory, although gains remained modest.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Indian equity markets opened lower, mirroring global weakness.
• US-Iran talks halted, increasing West Asia geopolitical concerns.
• Asian markets slid as investor risk appetite declined.

Indian equity markets witnessed a weak start on Tuesday, with benchmark indices tracking negative global cues amid renewed concerns over the US-Iran conflict and uncertainty surrounding diplomatic efforts in West Asia.

The BSE Sensex opened below 73,850, crashing more than 400 points, while the NSE Nifty50 started trading near 23,200, falling close to 150 points, as of 9:15 AM. 

Among Sensex constituents, Bajaj Finance, Eternal, Bajaj Finserv, Power Grid, Larsen & Toubro and NTPC emerged as the major losers in early deals. On the other hand, Infosys, Tata Consultancy Services, Tech Mahindra, HCL Tech, Asian Paints and Mahindra & Mahindra traded in positive territory.

The cautious start comes as investors assess the implications of stalled negotiations between Washington and Tehran, alongside fresh developments in the broader West Asian region.

At around 9:08 AM in the pre-open session, the Sensex was down 331.27 points, or 0.45 per cent, at 73,936.07, while the Nifty slipped 153.45 points, or 0.66 per cent, to 23,229.15.

US-Iran Negotiations Face Fresh Uncertainty

Investor sentiment remained fragile as diplomatic efforts to ease tensions involving the US and Iran continued to face hurdles, raising concerns about stability in West Asia and its potential impact on global markets.

According to Ponmudi R, CEO of Enrich Money, the prolonged uncertainty has curbed risk appetite worldwide, prompting investors to adopt a more defensive approach amid fears over regional security and possible repercussions for energy markets.

US President Donald Trump said he had persuaded Israeli Prime Minister Benjamin Netanyahu to cancel a planned strike on Beirut, leading the Israeli leader to pull back troops. Trump made the remarks on Truth Social on Monday evening amid reports of a heated exchange between the two leaders. The development came after Iran reportedly threatened to halt negotiations with the US over Israel’s actions in Lebanon.

Asian Markets Slide As Risk Appetite Weakens

Most major Asian markets traded lower on Tuesday as investors reacted to the deteriorating geopolitical backdrop.

Japan's Nikkei 225 fell more than 1.5 per cent, while South Korea's Kospi dropped nearly 2.5 per cent. The broad-based weakness reflected growing concerns that tensions in West Asia may remain unresolved in the near term.

The cautious sentiment across regional markets weighed on domestic pre-open indicators.

Wall Street Ends Higher Despite Geopolitical Concerns

US markets managed to finish Monday's session in positive territory, although gains remained modest.

The Dow Jones Industrial Average rose 0.09 per cent, while the S&P 500 gained 0.26 per cent. The Nasdaq Composite outperformed slightly, ending 0.42 per cent higher.

Despite the positive close, investors globally remain focused on geopolitical developments and their implications for inflation, energy prices and economic growth.

Crude Oil Retreats As Traders Monitor Developments

Oil prices eased in early Asian trading after gaining in the previous session.

Brent crude futures were trading around $94.46 per barrel, down 0.55 per cent, as traders reassessed the outlook for supply disruptions and the prospects of further escalation in the region.

While the pullback offered some relief, energy markets remain highly sensitive to developments involving the Strait of Hormuz, a crucial route for global oil shipments.

Gold And Silver Edge Lower

Precious metals also traded marginally lower, with both gold and silver futures slipping in early deals.

The subdued movement reflects a cautious approach among investors as they await greater clarity on geopolitical developments and broader market direction.

Market sentiment is expected to remain closely tied to developments in West Asia, particularly any updates on US-Iran relations and the status of the Strait of Hormuz.

Investors will also monitor crude oil prices, foreign fund activity and global market trends for further direction. While softer oil prices could offer some support, the broader tone is likely to remain cautious until there is greater clarity on the geopolitical front.

With global uncertainty persisting, volatility may remain elevated throughout the trading session.

Foreign Outflows Continue To Pressure Markets

Domestic equities also faced pressure from sustained foreign selling. Foreign Institutional Investors (FIIs) sold shares worth Rs 3,911.68 crore on Monday, according to exchange data.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said several global trends remain intact, including the continued AI-driven rally, fresh market records in the US, South Korea and Taiwan, and persistent foreign portfolio investor selling in India. He noted that India’s relative underperformance shows little sign of reversing in the near term.