Indian Stocks Plunge on Geopolitical Uncertainty and Crude Oil Prices
The Indian stock market declined in early trade on Tuesday due to elevated crude oil prices caused by geopolitical uncertainties.
The 30-share BSE Sensex fell 320.14 points to 78,204.40, while the 50-share NSE Nifty dropped 94.35 points to 24,490.85.
From the Sensex pack, InterGlobe Aviation, Axis Bank, UltraTech Cement, Bharti Airtel, Eternal, and Bajaj Finance were among the laggards, while Titan, HCL Tech, Tech Mahindra, and Infosys were gainers.
Brent crude traded marginally lower by 0.13 per cent at USD 87.61 per barrel.
Ponmudi R, CEO of Enrich Money, said that 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.
He added that investor sentiment remains restrained as negotiations appear to have entered a more complex phase, with US President Donald Trump calling for compensation from Iran and Tehran reiterating conditions for reopening the Strait of Hormuz.
Market participants are expected to adopt a wait-and-watch approach, with the domestic earnings season remaining the primary driver of stock-specific action. Higher crude prices may limit upside for the broader market and keep pressure on oil-sensitive sectors until fresh global or domestic catalysts emerge, according to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.