Markets fell for the second consecutive session on Tuesday, dragged down by surging crude oil prices and escalating geopolitical tensions in West Asia, as investors turned increasingly risk-averse across asset classes.
The Nifty 50 closed at 23,635, down 144 points or 0.61 per cent, extending its slide to a three- month low. The index opened around 36 points lower, touched an intraday high of 23,758 before slipping to a low of 23,623, and finished near session lows. Bank Nifty fell 310 points or 0.54 per cent to close at 56,777, marking its third consecutive session of decline.
“Renewed hostility between the US and Iran over the past few days has turned investors risk-off towards equity assets,” said Ankur Punj, Managing Director at Equirus Wealth, adding that selling in banking, IT, oil & gas and realty shares mirrored weak global cues.
The sell-off was broad-based across financial stocks. SBI Life, ICICI Bank and Axis Bank were among the top laggards on the Nifty 50, while BEL, Hindustan Unilever, and ONGC managed gains. Sectorally, Private Banks, Financial Services, and Oil & Gas led the declines, while Media, Pharma and Healthcare posted gains. Midcap 100 and Smallcap 100 bucked the trend, each gaining 0.2 per cent, though the advance-decline ratio on BSE stood at 0.92, reflecting continued weakness in market breadth.
The biggest macro overhang remains crude oil. WTI futures broke above $94 per barrel, approaching a three-month high, while Brent hovered near $98-99 per barrel, close to the $100 mark. The spike follows escalating tensions around the Strait of Hormuz amid the US-Iran standoff, stoking fears of supply disruptions. Ponmudi R, CEO of Enrich Money, noted that the market remains in a “sell on rise” mode, with DII buying acting as the only buffer preventing a sharper fall.
The Indian rupee bore the brunt of the twin pressure from elevated crude and risk-off dollar demand. The currency fell 33 paise to close at 94.82 against the US dollar. “Persistent FII selling over the past few sessions has added further pressure,” said Jateen Trivedi, VP Research Analyst at LKP Securities, who sees the rupee trading in the 94.50–95.25 range in the near term.
On the commodities front, gold traded in the ₹1,52,500–₹1,54,000 range domestically, while COMEX gold hovered between $4,387–$4,440, with markets awaiting cues from the US PCE Price Index data and the Federal Reserve’s policy decision next week.
Looking ahead, Indian equities are likely to remain under pressure. Markets will track crude price movements, further developments in West Asia, and the 18th BRICS Summit scheduled in New Delhi on September 12-13. On the primary market side, six mainboard IPOs are set to open on Wednesday, with 12 IPOs targeting approximately ₹7,180 crore lined up this week.