Sensex, Nifty likely to open lower as global cues weaken on US-Iran tensions

Indian benchmark indices — the BSE Sensex and Nifty 50 — are set to open lower on Tuesday, tracking weak global cues as rising tensions between the United States and Iran weigh on investor sentiment.

Gift Nifty was trading around 24,038, nearly 168 points below the previous close of Nifty futures, signalling a weak start for domestic equities.

Global markets under pressure

Asian markets remained subdued, with futures pointing to declines in key indices across Australia and Taiwan. Markets in Japan, South Korea and mainland China were shut.

Overnight, S&P 500 pulled back from record highs amid concerns that geopolitical risks could disrupt earnings momentum. The Dow Jones Industrial Average dropped 1.13% to 48,941.90, while the Nasdaq Composite slipped 0.19% to 25,067.80.

Among stocks, Nvidia inched higher, while Intel, Apple and Microsoft declined. Amazon and Tesla saw modest gains.

Middle East tensions escalate

Geopolitical risks intensified after fresh military exchanges between the US and Iran, with tensions around the Strait of Hormuz remaining elevated. The US military said it destroyed multiple Iranian vessels and intercepted missiles and drones, raising concerns over oil supply disruptions.

Domestic market recap

Back home, Indian equities ended Monday’s session on a positive note despite intraday volatility. The Sensex rose 355.90 points (0.46%) to close at 77,269.40, while the Nifty gained 121.75 points (0.51%) to settle at 24,119.30.

Ajit Mishra of Religare Broking said markets may remain range-bound in the near term, citing pressure in banking and IT stocks along with elevated crude oil prices. He advised a cautious, sector-specific approach with hedged strategies.

Politics in focus

On the domestic front, election results remain in focus. The Bharatiya Janata Party is set to form governments in West Bengal and Assam, while the Congress-led United Democratic Front secured a strong win in Kerala. In Tamil Nadu, Tamilaga Vettri Kazhagam has emerged as a key player, pushing the incumbent Dravida Munnetra Kazhagam to third place.

Commodities and currency

Oil prices eased after a sharp surge in the previous session. Brent crude slipped 0.6% to $113.76 per barrel, while US WTI crude fell 1.5% to $104.83.

Gold held steady on safe-haven demand, with spot prices rising 0.2% to $4,528.99 per ounce.

The dollar index remained firm at 98.452. The euro traded at $1.1693, the British pound at $1.353, and the Japanese yen at 157.22 per dollar.