Sensex, Nifty Seen Opening Lower On Weak Global Cues, US-Iran Tensions

The Indian benchmark indices, Sensex and Nifty 50, are likely to open on a weaker note on Tuesday, tracking global market softness as escalating tensions in the Middle East—driven by the US-Iran conflict—continue to weigh on investor sentiment.

Gift Nifty was hovering around the 24,038 mark, a discount of nearly 168 points from the previous Nifty futures close, indicating a negative start for domestic equities.

Global cues remain weak

Asian markets were largely subdued, with equity futures pointing to declines in key markets such as Australia and Taiwan. Major markets in Japan, South Korea and mainland China remained shut.

Overnight, Wall Street ended lower, with the S&P 500 retreating from record highs amid concerns that geopolitical tensions could

derail the ongoing earnings momentum.

The Dow Jones Industrial Average fell 1.13% to 48,941.90, while the Nasdaq Composite slipped 0.19% to 25,067.80.

Among stocks, Nvidia edged marginally higher, while Advanced Micro Devices, Intel, Apple and Microsoft saw declines. Amazon and Tesla posted modest gains.

Meanwhile, GameStop dropped sharply, while eBay advanced. Logistics players FedEx and United Parcel Service also saw steep declines.

Geopolitical tensions intensify

The conflict between the US and Iran escalated further after fresh military exchanges on Monday, with the United Arab Emirates also getting drawn into the situation. The US military said it destroyed multiple Iranian vessels and intercepted missiles and drones, as tensions around the Strait of Hormuz continued to rise.

Domestic market recap

On Monday, Indian equities gave up early gains due to profit booking but still ended in positive territory. The Sensex rose 355.90 points, or 0.46%, to close at 77,269.40, while the Nifty 50 gained 121.75 points, or 0.51%, to settle at 24,119.30.

Ajit Mishra, SVP – Research at Religare Broking, said the market is likely to remain in a consolidation phase amid pressure in banking and IT stocks, along with elevated crude oil prices. He advised traders to adopt a sector-specific approach and prefer hedged strategies until clearer directional cues emerge.

Election results in focus

On the domestic political front, the Bharatiya Janata Party is set to form the government with a strong mandate in West Bengal and Assam. In Kerala, the Congress-led United Democratic Front has secured a decisive win, while in Tamil Nadu, Tamilaga Vettri Kazhagam has emerged strongly, pushing the incumbent DMK to third place.

Commodities and currency

Crude oil prices eased after a sharp spike in the previous session. Brent crude futures for July declined 0.6% to $113.76 per barrel, while US WTI crude fell 1.5% to $104.83.

Gold prices remained steady, supported by safe-haven demand amid geopolitical tensions. Spot gold rose 0.2% to $4,528.99 per ounce, while US gold futures edged up 0.1%.

The dollar index held firm at 98.452 after a recent uptick. The euro traded at $1.1693, the British pound at $1.353, and the Japanese yen at 157.22 per dollar.