Indian equity markets opened on a muted note on Tuesday, April 7, 2026, with the BSE Sensex starting trading under 73,300, crashing more than 700 points, while the NSE Nifty50 opened around 22,838, taking a hit of nearly 129 points as of 9:15 AM. The weakness reflects cautious investor sentiment amid mixed global cues, with the Sensex opening 0.50% or 372 points lower at 73,734.36 points compared to their previous market close level of 74,106.85 points. As of 9:16 AM IST, NIFTY50 was trading 0.90% lower at 22,762.15 points, while the BSE SENSEX was down 0.94% to 73,408.68 points, according to The Hindu BusinessLine. The selloff comes after three consecutive sessions of gains for the Nifty — a streak that market watchers had flagged as notable. As HDFC Securities' Head of Prime Research Devarsh Vakil noted, "Nifty has never risen for more than three consecutive trading sessions since the U.S.-Iran War started in late February." The GIFT Nifty was quoted at 22,885, down 172 points or 0.75 per cent, signalling subdued sentiment ahead of the session, as reported by ABP Live. The continued disruption around the Strait of Hormuz, a critical global oil transit route, has heightened fears of supply constraints and added pressure on global markets.
On the domestic front, attention is firmly on the Reserve Bank of India's Monetary Policy Committee (MPC) decision, scheduled for Wednesday, with investors closely tracking the central bank's commentary on inflation, growth outlook and interest rate trajectory for cues on the market's near-term direction. ICRA expects the Monetary Policy Committee (MPC) to maintain an extended pause on policy rates through FY2027, notwithstanding the anticipated moderation in growth, given the projected uptrend in CPI inflation and persistent upside risks. Assuming an average crude oil price of $85 per barrel with no pass-through to RSPs, ICRA pegs the WPI at 3.5% and the CPI at 4.3% in FY2027, with risks tilted to the upside. Underlying pressures persist due to elevated crude oil prices, geopolitical risks and continued foreign fund outflows, which may limit sustained appreciation, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. Analysts expect markets to remain volatile, with sentiment closely tied to developments in West Asia, crude oil movements and global cues, as reported by ABP Live.
Oil prices continued to hover near the $110 per barrel mark, keeping inflation concerns alive, with WTI crude oil climbing to $115 per barrel after Trump reaffirmed his deadline, threatening strikes on Iranian power plants and bridges. The Strait of Hormuz, which handles roughly one-fifth of global oil flows, has remained disrupted since the conflict began on February 28, pushing crude prices up approximately 90 per cent year-to-date. Elevated crude prices continue to weigh on India's macro outlook, with crude "hovering in the $110–113 range continuing to act as a significant overhang," raising inflation concerns and widening India's import bill, noted Enrich Money CEO Ponmudi R. The surge in oil prices has been driven by supply disruptions in West Asia, particularly around the Strait of Hormuz, which handles a significant share of global crude shipments. On Thursday, WTI climbed over 11% while Brent surged around 8% in volatile trade, marking their biggest absolute gains since 2020, after US President Donald Trump promised to continue the attack on Iran. Brent crude futures gained around 1.4% to trade at $111 per barrel, while WTI Crude futures gained nearly 3% to $115 per barrel as of Tuesday morning, according to The Economic Times. Oil prices have seen a skyrocketing rally since the outbreak of the war at the end of February this year. Oil prices crossed the crucial $100 mark in March after the closure of the Strait of Hormuz, marking the first time since Russia's invasion of Ukraine in 2022, and have sustained over that level since then.
Investor sentiment remained fragile after US President Donald Trump ramped up his threats against Iran, while postponing his plan to unleash "hell" on Tehran for still not completely opening the Strait of Hormuz, as reported by The Economic Times. He warned that "the entire country of Iran" could be taken out in one night and that night might be tomorrow night" if Tehran failed to comply. "Every power plant in Iran will be out of business, burning, exploding and never to be used again," Trump said, adding that bridges could face "complete demolition by 12 o'clock... over a period of four hours - if we wanted to." Iran has dismissed the remarks. Meanwhile, fresh Israeli airstrikes were reported in Iran, followed with retaliatory missile fire as the war continues to show no sign of resolution. Trump's ultimatum to Iran — demanding the reopening of the Strait of Hormuz by 8.00 PM ET (6.30 AM IST, Wednesday) — kept investors on edge. Iran rejected a U.S.-backed 45-day ceasefire proposal — supported by Pakistan, Egypt, and Türkiye — instead demanding a permanent end to hostilities, sanctions relief, and war damage compensation. Stock markets had rallied yesterday after a report said that Iran and US have received a plan to end their conflict, which can take effect as soon as Monday and lead to the resumption of trade through the Strait of Hormuz, according to The Economic Times.
The market decline has been severe, with the sharp fall wiping off more than ₹3.5 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down to ₹424 lakh crore. Sensex declined nearly 660 points to 73,450, while Nifty 50 dropped 204 points (nearly 0.9%) to 22,764 on Tuesday morning after opening. IndiGo, Zomato-parent Eternal, Mahindra & Mahindra (M&M), State Bank of India (SBI), Axis Bank and Asian Paints were among the top losers on Sensex, declining around 2-3%, while bucking the trend, Bajaj Finance, TechMahindra, HCL Tech and ITC shares were trading in the green, but with only marginal gains. Nifty Auto led losses among the sectoral indices on NSE, falling more than 2% in the early trading hours, while Nifty PSU Bank index declined 1.9%. On the Nifty 50, gainers were limited to just two stocks. Hindalco Industries rose 1.34% to ₹939.90, while Wipro gained 0.98% to ₹199.22. Losers were broad-based, with Eternal falling 1.82% to ₹227.98, IndiGo dropping 1.81% to ₹4,234.30, Eicher Motors declining 1.64% to ₹6,487.50, and Tata Consumer Products shedding 1.63% to ₹1,038.00. Around 1,105 stocks declined on NSE, while 1,398 advanced and 82 remained unchanged, as reported by The Economic Times. Nifty Metal meanwhile gained 0.7%, even as India Vix jumped 2%, with Nifty Auto leading losses among the sectoral indices on NSE, falling more than 2% in the early trading hours, while Nifty PSU Bank index declined 1.9%.
The rupee showed some resilience, trading within the 92.50–93.20 range, supported by what analysts describe as active Reserve Bank of India intervention. The rupee had appreciated 4 paise on Monday on hopes of de-escalation. Foreign institutional investors (FIIs) remained net sellers, offloading ₹8,167 crore on April 6, while domestic institutional investors (DIIs) provided a partial cushion, purchasing over ₹8,000 crore. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that "FPI selling is purely short-term guided only by the weakness in the rupee and high bond yields in the US," adding that "patient investors who can sit through this period of short-term aberration have an opportunity with low risk to buy high quality financials, particularly the leading banking stocks." Despite the return of the bears, few positive tailwinds can be seen in the markets. Foreign portfolio investors have significantly intensified their selling pressure, with FPIs offloading shares worth ₹1.22 lakh crore in March 2026, marking the largest-ever monthly selling by foreign investors according to The Hindu BusinessLine. FPIs pulled out ₹1.17 lakh crore from Indian equities in March 2026, while ₹23,800 crore in April so far, with FPIs turning net sellers of domestic stocks to the tune of ₹9,931.13 crore on Thursday.
Markets concluded their sixth consecutive week of decline, falling by nearly half a percent, reflecting heightened volatility driven by a mix of global and domestic uncertainties. The market has formed a promising reversal pattern on intraday charts, indicating the potential for a further uptrend from current levels. 22,500/72,700 and 22,300/72,000 would act as key support zones for the market, with the index remaining under sustained pressure and declining to a low of 22,182.55 before recovering to close at 22,713.10, as reported by Choice Broking. On the higher side, the bounce-back could extend till 22,900–23,000/74,000-74,200, with further upside potentially lifting the market to 23,200/75,000, while below 22,300/72,000, the uptrend would become vulnerable. Bank Nifty faces resistance in the 52,800–53,000 zone, with support at 52,000–52,100, having surged over 1,500 points intraday on Monday before closing at 52,609.10, up 2.06%. Short-term resistance for Nifty is placed at 23,465, with supports at 22,800 and 22,540. With today being a weekly expiry day and the geopolitical deadline hours away, traders are being advised to stay selective and wait for confirmation near key levels before taking fresh directional positions, as noted by Livelong Wealth founder Hariprasad K, who flagged that "at such levels, option premiums remain expensive and the expected pace of theta decay is significantly slower." Market participants remain in a wait-and-watch mode as the deadline for a potential deal approaches, with analysts saying markets are likely to remain cautious as investors track geopolitical developments and await clarity on the outcome of ongoing tensions.
