Sensex, Nifty slip in early trade as US-Iran deadlock fuels geopolitical jitters

Indian equity benchmarks opened lower on Wednesday as investor sentiment weakened amid concerns that geopolitical tensions could persist after the US and Iran failed to reach an agreement on Tuesday. 

At 9:46 am, the BSE Sensex was trading at 78,671.44, down 601.89 points or 0.76%. The NSE Nifty50 slipped 151.30 points, or 0.62%, to 24,425.30. 

The India VIX, a measure of market volatility, rose 3.6% to 18.16, indicating higher near-term uncertainty among investors. 

Broader markets were mixed. The Nifty MidCap index declined 0.20% while the Nifty SmallCap index advanced 0.30%. 

Sectoral view 

Among sectors, Nifty IT emerged as the top laggard. Nifty Healthcare and Nifty Pharma also traded weak. On the other hand, Nifty Consumer Durables and Nifty Metal outperformed the broader market. 

Investor caution intensified after reports that the US extended its ceasefire with Iran, pending a unified resolution proposal from Tehran. US President Donald Trump, in a post on Truth Social, described the Iranian government as “seriously fractured” while announcing the extension. 

However, Trump said the blockade at the Strait of Hormuz would remain in place, keeping concerns over global oil supply disruptions alive. 

Asian markets traded mixed on Wednesday, taking cues from Wall Street’s overnight rally as oil prices eased on hopes that Washington and Tehran could resume talks to end the conflict. 

Brent crude dipped 0.2% but remained above $98 a barrel while US benchmark crude declined 0.4% to $89.29 a barrel. 

Asian markets mixed 

In Asia, Japan’s Nikkei 225 rose 0.5% to 59,653.56 while South Korea’s Kospi dipped 0.2% to 6,374.46. Australia’s S&P/ASX 200 fell 0.9% to 8,866.20. Hong Kong’s Hang Seng fell 1.3% to 26,137.59 while China’s Shanghai Composite edged 0.1% higher to 4,090.24. Taiwan’s Taiex gained 1.1%. 

Rupee falls 31 paise 

Meanwhile, the Indian rupee weakened for the third consecutive session, falling 31 paise to 93.75 against the US dollar in early trade. Rising crude oil prices, uncertainty over a West Asia peace deal, foreign fund outflows, and weak domestic equities weighed on the currency, according to forex traders. 

At the interbank forex market, the rupee opened at 93.69 and slipped to an intraday low of 93.76 before trading at 93.75. 

The currency had settled 28 paise lower at 93.44 on Tuesday, after losing 25 paise on Monday. It had gained 47 paise in the two sessions prior to that.