Oil Prices, US-Iran Tensions Weigh on Indian Markets

Indian stock markets, represented by the Sensex and Nifty indices, saw a decline in early trade on Tuesday due to a combination of factors. Rising crude oil prices and fresh US-Iran tensions weighed heavily on investor sentiment.

The Brent crude price traded at $91.22 per barrel, up 0.76% from previous levels. This increase in oil prices contributed to the market's downturn, as investors grew cautious about the potential impact on the economy.

Additionally, expectations of a tighter US Federal Reserve policy are also influencing risk appetite across emerging markets. Ponmudi R, CEO of Enrich Money, noted that 'Indian equity markets are expected to remain cautious' due to these external headwinds.

The domestic economy showed resilience, however, with India's real GDP expanding 7.8% in the first quarter of FY27, exceeding both the RBI's projection and market expectations.