Sensex, Nifty Drop 1% Amid Global Tensions and Oil Price Surge

Indian stock markets opened on a weak note Tuesday, with both BSE Sensex and Nifty 50 slipping ???? 1% in early trade. The decline comes amid rising uncertainty over tensions in West Asia, especially ahead of a deadline set by Donald Trump regarding the reopening of the Strait of Hormuz.

The Sensex initially fell 372 points to open at 73,734, while the Nifty started at 22,838. As selling pressure intensified, both indices slipped further — the Sensex dropped over 800 points during intraday trade, and the Nifty fell close to 250 points.

Broad-Based Selling Across Sectors
The market downturn was widespread, with major sectors like financials, auto, real estate, and pharma falling up to 2%. Stocks such as InterGlobe Aviation (IndiGo), Max Healthcare, Mahindra & Mahindra, Eicher Motors, Apollo Hospitals, and Dr. Reddy’s Laboratories were among the biggest losers in early trade.

Oil Prices Add to Market Nervousness
Investor sentiment was further weighed down by rising crude oil prices. Brent Crude surged nearly 1.7% to $111.63 per barrel, while WTI Crude jumped ???? 3% to $115.64. Higher oil prices typically raise inflation concerns for India, a major oil importer, adding pressure on equities.

Global Markets Mixed
Across Asia, markets showed a mixed trend. Japan’s Nikkei 225 remained flat, Hong Kong’s Hang Seng Index dipped 0.71%, while South Korea’s KOSPI edged up 0.40%.

In the US, Wall Street ended slightly higher overnight. The S&P 500 gained 0.44%, and the Nasdaq Composite rose 0.54%, reflecting cautious optimism.

FIIs vs DIIs
Foreign institutional investors (FIIs) continued to pull money out, selling equities worth ?8,167 crore on Monday. However, domestic institutional investors (DIIs) provided some cushion by buying nearly ?8,000 crore worth of stocks.

What Analysts Say
Market experts believe the broader trend still shows signs of resilience, with buying seen at lower levels. However, they caution that sustained recovery will depend on how markets perform near key resistance levels. Investors are advised to stay selective and wait for clearer signals before making fresh bets.

Overall, geopolitical uncertainty and rising oil prices are currently driving market sentiment, keeping investors on edge.