India’s equity benchmarks rebounded from early morning session lows Tuesday, though indices still hovered near six-month troughs as soaring crude oil prices and mounting foreign capital outflows weighed heavily on investor sentiment.
The NSE Nifty 50 traded 0.29% lower at 22,715.00 points, while the BSE Sensex shed 0.35% to 72,522.09 points by mid-morning trade. Earlier in the session, both indices tumbled as much as 0.9% to touch their lowest levels since early April, compounding a steep selloff from Monday that saw the 30-share barometer plunge over 1,100 points.
Global oil benchmark Brent crude futures advanced 1.5% to $107 a barrel—and touched highs of $107.1—as persistent supply worries linked to the escalating US-Iran conflict stoked fears of disruptions through the critical Strait of Hormuz. For India, the world’s third-largest crude importer, sustained oil pricing pressures threaten to stoke domestic inflation, widen the import bill, and squeeze corporate profit margins.
“Rising US 10-year Treasury yields, which surged to their highest levels since July 2007, and elevated crude oil prices are weighing heavily on market sentiment, triggering broad-based selling across Indian equities,” said Spark Midas Equities and Research. Analysts noted that while the overall technical structure remains negative, daily momentum indicators lingering in oversold territory have opened the door for a modest intraday pullback.
Foreign institutional investors (FIIs) further dampened market mood, offloading equities worth ₹5,353.22 crore on Monday. Heavyweight financials and banking counters bore the brunt of the selling pressure. HDFC Bank fell 1.6%, ICICI Bank dropped 1%, and Reliance Industries slipped 0.6%. Major Tata Group companies also retreated following a recent proposal by Tata Trusts to merge two group entities with Tata Sons Pvt. Ltd. to circumvent central bank holding-company listing norms; Tata Motors tumbled 3% and Tata Investment lost 2.5%.
Broader markets mirrored the benchmark weakness, with small-cap and mid-cap indices each sliding 0.8%, and 14 of the 16 major sectoral gauges logging losses.
Bucking the broader downtrend, infrastructure player NCC Ltd. gained 2.7% after bagging an order worth ₹1,077 crore, while Ellenbarrie advanced 3% following a 4.81-billion-rupee contract win from BHEL.
While US President Donald Trump stated that Washington DC would win the ongoing conflict “very soon” and mediators continue diplomatic efforts, market participants remain wary.
“Significant uncertainty remains around the negotiations, keeping concerns over potential supply disruptions elevated,” said Ponmudi R, CEO of Enrich Money.
