Sensex, Nifty End Lower As Oil Price Surge And Weak Global Cues Weigh On Sentiment

Indian equity benchmarks closed in the red on Tuesday, dragged down by a sharp rally in crude oil prices and weakness across global markets. The Nifty 50 settled at 24,052.05, down 158 points or 0.73%, while the Sensex closed at 77,054.94, shedding 561 points or 0.72%.

Auto, IT, FMCG, and Media stocks led the decline, as investors turned cautious amid renewed geopolitical tensions in the Middle East.

Global Cues Turn Risk-Off

Sentiment took a hit after US President Donald Trump announced that Washington was reinstating its blockade of Iranian shipping in the Gulf and would impose a 20% fee on cargo passing through the Strait of Hormuz, a move that stoked fresh concerns over global energy supplies and sent Asian equities lower in early trade.

Brent crude futures gained $1.68, or 2%, to $84.98 per barrel, while US West Texas Intermediate (WTI) crude advanced $1.65, or 2.1%, to $79.79 per barrel. In the previous session, Brent had surged 9.6%, marking its biggest single day jump since May 2020.

Despite the jump in oil prices, most Asian markets managed to close in positive territory, showing resilience to the news. Japan's Nikkei ended up 0.74%, Hong Kong's Hang Seng Index gained 0.52%, and China's Shanghai Composite rose 1.36%.

Wall Street, however, closed lower on Monday as escalating tensions with Iran pushed oil prices higher. The Dow Jones Industrial Average slipped 138.31 points, or 0.26%, to 52,498.70. The S&P 500 fell 59.92 points, or 0.79%, to 7,515.47, while the Nasdaq Composite dropped 408.43 points, or 1.55%, to close at 25,873.18.

Stocks in Focus

IDBI Bank shares rallied as much as 4% on the NSE after reports emerged that the government has received revised financial bids from two foreign bidders for the proposed stake sale in the lender, reviving investor interest in the stock.

Biocon climbed 3% after existing shareholder Mylan Inc. announced plans to exit the pharmaceutical major by selling its entire stake through a block deal worth up to ₹3,481 crore (approximately $363 million, at an exchange rate of ₹95.83 per dollar).

HCL Technologies, on the other hand, bucked the trend of strong earnings translating into stock gains. Shares fell around 4%, touching a day's low of ₹1,183 on the BSE, even after the IT major posted a robust performance for the quarter ended June 2026 (Q1FY27)

Outlook

With crude oil prices back in focus following the renewed US stance on Iranian shipping, markets are likely to stay watchful of developments in the Strait of Hormuz in the sessions ahead, even as broader Asian markets have so far shown a degree of resilience to the news.

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