Indian stock markets opened lower on Tuesday as the BSE Sensex plunged over 300 points to 78,256.43, while the NSE Nifty50 slipped below 24,550, falling 79.25 points or 0.32% to 24,504.55 as of 9:19 AM. According to The Hindu BusinessLine, the selloff was broad-based, though technology stocks emerged as relative outperformers with HCL Tech leading Nifty 50 gainers, rising 1.43% to ₹1,376.60, followed by Titan at ₹5,158.00, up 1.34%. The weakness follows a cautious overnight session globally, with the S&P 500 declining 0.1% to 7,753 and the Nasdaq falling 0.3% to 26,605, snapping a two-week rally that had carried the S&P 500 to a record close near 7,758. The subdued opening came as investors assessed the latest developments surrounding the US-Iran situation, with expectations of a near-term deal appearing to weaken. Asian markets opened mixed, with Japan's Nikkei 225 remaining shut for the Mountain Day holiday, while South Korea's Kospi fell nearly 1% in early trade as investors weighed developments in West Asia alongside overnight cues from Wall Street.
Among individual stocks, IndiGo emerged as the top decliner, falling 2.04% to ₹5,224.50, while Bajaj Finance dropped 1.33% to ₹1,087.50 and Tata Consumer Products fell 1.08% to ₹1,096.70. However, technology stocks bucked the broader trend with HCL Tech leading gains at 1.43%, followed by Titan at ₹5,158.00 (up 1.34%), Tech Mahindra gaining 1.12% to ₹1,658.40, TCS adding 1.11% to ₹2,452.60, and Wipro rising 0.99% to ₹187.33. According to The Hindu BusinessLine, the selloff was broad-based, though technology stocks emerged as relative outperformers. On the losing side, Axis Bank slid 0.93% to ₹1,235.70, and Shriram Finance lost 0.88% to ₹1,127.80, while PSU Banks and Defence indices were among the underperformers in Monday's session, declining over 1%. The overall market breadth remained slightly positive, with NSE seeing 1,373 advances against 1,169 declines, while 119 stocks remained unchanged, indicating selective buying interest despite the benchmark indices' decline.
Investor concerns intensified after reports that Iran is considering legislation to prohibit US, Israeli, and other vessels classified as hostile from transiting the Strait of Hormuz, a strategic waterway that handled nearly 20% of global oil and LNG shipments before the conflict escalated in late February. According to Iran's Fars News Agency, a parliamentary committee is reviewing a draft bill that would not only ban such vessels from using the strait but also impose penalties of up to 20% of the cargo's value on ships found violating the proposed rules. In a separate development, a senior Iranian official said Tehran is seeking to levy transit fees of 5% to 7% of cargo value on vessels using the Strait of Hormuz, while Oman is reportedly negotiating for a fee of around 3%, with the United States continuing to advocate for unrestricted, toll-free passage through the strategic shipping route. The latest concerns emerged as Iran, working with Oman, proposed restrictions on vessels deemed hostile and heavy penalties for ships violating the proposed rules in the Strait of Hormuz. "WTI crude has climbed back towards the $82 per barrel mark, while Brent is trading above $87, reflecting persistent concerns over disruptions linked to the Strait of Hormuz," noted Hariselvan Radhakrishnan, Founder and CEO of HST Wealth. "Unless geopolitical clarity emerges, elevated energy prices are likely to keep investors cautious and could cap any meaningful upside in domestic equities," he added.
Oil prices moved higher as investors assessed the outlook for global supplies amid signs of an impasse in US-Iran discussions. Brent crude surged above $87 per barrel and WTI climbed to $82 per barrel after US President Donald Trump demanded compensation from Iran, dimming prospects of a near-term resolution over the Strait of Hormuz. "WTI crude has climbed back towards the $82 per barrel mark, while Brent is trading above $87, reflecting persistent concerns over disruptions linked to the Strait of Hormuz," noted Hariselvan Radhakrishnan, Founder and CEO of HST Wealth. For Indian equities, crude oil remains an important market trigger as sustained higher prices can influence inflation, the rupee and corporate margins. Asian markets reflected the same caution as Wall Street retreated overnight, with investors pulling back from risk assets as crude oil prices rebounded toward $87.80 per barrel on growing doubts over diplomatic progress involving Iran and the Strait of Hormuz. Asian equities traded cautiously on Friday as investors awaited US employment data that could influence expectations for the Federal Reserve's interest-rate decision next month.
According to The Economic Times, Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty 50 in the previous session remained volatile within a narrow range during the day, with the near to short-term trend remaining sideways to positive as the index has been sustaining above the critical short-term 50 EMA. The daily RSI remains in a bullish crossover, with the 24,650 level remaining a key resistance, and a decisive move above this level might induce a sustained rally in the market. On the lower end, support is placed at 24,500, below which weakness might intensify, with investors expected to see range-bound and lacklustre movement until then. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said "below 24,500/78,300, selling pressure may accelerate," with the market potentially retesting "24,400–24,350/78,000–77,800" on the downside. Foreign institutional investors found encouragement in favorable Q1 outcomes and a stable rupee, suggesting that the market could maintain its strength with a slight upward trend. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to a meaningful shift in market dynamics, noting that "FIIs are doing a capital rotation away from the 'chip trade' in South Korea and Taiwan and are compensating for the under ownership in Indian stocks." He also flagged that FIIs are "investing in expensive stocks in sectors like telecom, renewable energy, capital goods and pharmaceuticals rather than attractively valued banking majors."
