Benchmark stock market indices ended lower on Tuesday as fresh US strikes on Iran weakened hopes of an immediate peace deal and reignited concerns over crude oil prices, inflation and the broader economic outlook.
The S&P BSE fell 479.26 points, or 0.63%, to close at 76,009.70, while the NSE Nifty50 declined 118 points, or 0.49%, to settle at 23,913.70.
Investor sentiment turned cautious after the US launched fresh strikes on Iran, days after President Donald Trump had claimed Washington and Tehran had “largely negotiated” a memorandum of understanding to end the three-month-long conflict. US Secretary of State Marco Rubio later said negotiations could still “take a few days”.
The renewed geopolitical tensions pushed crude oil prices higher again after Monday’s sharp decline. The Indian rupee also weakened nearly 0.5% to close at 95.68 against the US dollar, snapping its three-session winning streak. Traders said the fall was partly cushioned by likely RBI-linked dollar sales through state-run banks.
Broader markets, however, remained relatively resilient. The Nifty Midcap 100 rose 0.59% and touched a fresh all-time high during the session, while the Nifty Smallcap 100 gained 0.41%. India VIX declined 2.87%.
Among sectoral indices, Nifty Metal emerged as the top gainer, rising 1.21%, while Nifty Pharma and Nifty IT ended largely flat. Nifty Auto added 0.14%. On the other hand, Nifty Consumer Durables fell 0.88%, while Nifty Private Bank slipped 0.47% and Nifty Financial Services declined 0.43%.
On the Sensex pack, Tech Mahindra was the top gainer, rising 1.68%. Eternal Ltd gained 0.99%, while Maruti Suzuki India climbed 0.55%. Adani Ports and Special Economic Zone rose 0.44%, and Hindustan Unilever ended 0.39% higher.
Trent dropped 1.42%, Tata Consultancy Services fell 1.35%, Bajaj Finance declined 1.25%, Bharti Airtel slipped 1.23%, and Titan Company fell 1.14%. HDFC Bank and Mahindra and Mahindra also ended lower.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Near-term optimism around a potential US–Iran peace deal faded sharply following reports of US military operations in southern Iran, triggering a spike in crude prices and reversing the rupee’s brief appreciation.”
“The monthly F&O expiry further amplified technical selling pressure in an already risk-off environment, leading domestic equities to close lower. Despite this, mid-cap resilience stood out, with the index touching an all-time high during the session,” he added.
Nair further said, “This strength reflects structural confidence in domestic earnings, supported by sustained DII inflows even as FII outflows weighed on sentiment. With crude still lower on a weekly basis, markets continue to price in a meaningful probability of de-escalation in West Asia.”
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