New Delhi: Benchmark indices Sensex and Nifty declined in early trade on Tuesday amid elevated crude oil prices due to geopolitical uncertainties.
The 30-share BSE Sensex declined 320.14 points to 78,204.40 in early trade. The 50-share NSE Nifty dropped 94.35 points to 24,490.85.
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From the Sensex pack, InterGlobe Aviation, Axis Bank, UltraTech Cement, Bharti Airtel, Eternal and Bajaj Finance were among the laggards.
Titan, HCL Tech, Tech Mahindra, and Infosys were among the gainers.
Brent crude, the global oil benchmark, traded marginally lower by 0.13 percent at USD 87.61 per barrel.
"The 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, setting a cautious backdrop for domestic equities," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Investor sentiment remains restrained as negotiations appear to have entered a more complex phase, Ponmudi said.
"US President Donald Trump has called for compensation from Iran, while Tehran has reiterated conditions for reopening the Strait of Hormuz, raising doubts over the timing and durability of any potential agreement. Until greater clarity emerges, markets are likely to remain headline-driven, with investors reluctant to take aggressive directional positions," he added.
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In Asian markets, South Korea's KOSPI traded higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index traded lower.
US markets ended lower on Monday.
"Market participants are expected to adopt a wait-and-watch approach, with the domestic earnings season remaining the primary driver of stock-specific action. In the near term, higher crude prices may limit upside for the broader market and keep pressure on oil-sensitive sectors until fresh global or domestic catalysts emerge," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
WTI crude has climbed back towards the USD 82 per barrel mark, while Brent is trading above USD 87, reflecting persistent concerns over disruptions linked to the Strait of Hormuz, he added.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,974.76 crore on Monday, according to exchange data.
On Monday, the Sensex was up 43.27 points, or 0.06 per cent, and settled at 78,542.44. The Nifty went up marginally by 13.15 points, or 0.05 per cent, to end at 24,583.80.
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