GIFT Nifty fell about 50 points on Tuesday, indicating a muted opening for Indian equity benchmarks Sensex and Nifty, as renewed US military strikes in Iran and a rebound in crude oil prices dampened sentiment. The decline comes after a sharp rally on Monday, when the Nifty 50 closed at 22,500, up 1.2%.
US airstrikes targeted Iranian military facilities in the early hours of Tuesday, according to Pentagon officials, escalating tensions in the Middle East. In response, Brent crude oil futures rose 2.5% to $82 per barrel, raising concerns about inflationary pressures and import costs for India, a major oil importer.
Asian markets were mixed, with Japan's Nikkei 225 up 0.3% and China's Shanghai Composite flat, but the negative cues from the Middle East weighed on Indian futures. Foreign institutional investors (FIIs) turned net sellers on Monday after three days of buying, offloading shares worth ₹1,200 crore.
Domestic factors, including expectations of a normal monsoon and steady corporate earnings, provided some support, but analysts cautioned that volatility may persist due to geopolitical risks. The Indian rupee weakened to 83.50 against the US dollar, tracking higher oil prices.
