May 26: India’s benchmark equity indices opened on a subdued note on Tuesday as investors reacted cautiously to renewed geopolitical tensions in the Middle East following fresh U.S. military strikes in southern Iran.
In early trade, the BSE Sensex slipped 155 points, or 0.20%, to 76,333.70, while the NSE Nifty 50 declined 47 points to trade slightly below the 24,000 mark at 23,984.25.
Market sentiment weakened after reports that U.S. forces targeted missile-launch facilities and boats allegedly involved in mine-laying operations near Iranian waters. The development revived concerns over regional instability and its possible impact on global energy supplies.
The cautious opening came a day after Indian equities touched a two-week high on expectations that diplomatic negotiations between the United States and Iran could ease tensions. However, the latest military action reduced hopes of a near-term breakthrough.
Sector-wise, most indices traded in the red during opening hours, with 11 out of 16 major sectors witnessing declines. Despite the weak broader sentiment, mid-cap and small-cap stocks showed resilience, each gaining around 0.1%.
Meanwhile, crude oil prices moved sharply higher. Brent crude futures climbed nearly 2% to around $98 per barrel as traders assessed the possibility of supply disruptions from the Middle East. Rising oil prices remain a concern for import-heavy economies like India, as they can increase inflationary pressures and affect corporate profitability.
Investors are now expected to closely track further geopolitical developments, crude oil movements, and global market cues for direction in the coming sessions.