Indian equity markets remained under heavy pressure on Tuesday as rising geopolitical tensions between the United States and Iran, soaring crude oil prices and a sharply weakening rupee triggered widespread selling across sectors.
The benchmark indices extended losses for a second straight session, with the broader market also trading deep in the red.
NIFTY 50 was trading over 0.85% lower, down around 200 points at 23,615, while BSE Sensex slipped nearly 750 points, or 1%, to 75,259 around 10:30 am.
Meanwhile, the Indian rupee touched a fresh all-time low against the US dollar amid continued global uncertainty.
Rupee Hits Record Low Amid Global Jitters
The rupee weakened sharply in early trade on Tuesday, opening at a record low before slipping further to Rs 95.63 against the US dollar.
The local currency opened around Rs 95.57 and extended losses as investors reacted nervously to developments in West Asia and rising oil prices.
The pressure on the rupee follows continued concerns over India’s import bill, especially as crude oil prices remain elevated due to instability around the Strait of Hormuz, a key global energy shipping route.
Geopolitical Tensions Trigger Market Selloff
Investor sentiment remained weak after US President Donald Trump said the Iran ceasefire was on “life support”, raising fears that tensions in the Middle East could escalate further.
The Trump administration has reportedly also intensified financial scrutiny linked to Iran, asking banks to monitor suspicious transactions that may involve entities connected to Iran’s Revolutionary Guard.
Markets globally have remained cautious amid fears that prolonged conflict could disrupt energy supplies and trigger further volatility in commodities and currencies.
PM Modi’s Fuel Conservation Appeal Impacts Market Mood
Over the weekend, Prime Minister Narendra Modi urged Indians to adopt fuel-saving measures similar to those seen during the Covid-19 pandemic.
The Prime Minister encouraged work-from-home practices, greater use of public transport, reduced fuel consumption and postponement of non-essential foreign travel and gold purchases.
The remarks have brought several sectors into focus, including oil marketing companies, aviation, hospitality, travel and consumer businesses.
IT Stocks Emerge As Biggest Losers
The information technology sector witnessed heavy selling pressure on Tuesday and emerged as the worst-performing segment of the market.
Tata Consultancy Services and Infosys both dropped more than 3%, while Wipro, HCLTech and LTIMindtree also traded sharply lower.
The broader NIFTY IT index declined nearly 3%, making it the biggest sectoral loser of the day.
Sectoral Performance
Most sectoral indices traded in negative territory, with Realty, Media and Defence stocks also seeing sharp declines.
Only a few sectors, including PSU Banks, Metal, Energy and Oil & Gas, managed to show relative resilience amid the market-wide weakness.
The broader market underperformed benchmark indices as well, with the Nifty Smallcap 250 and Nifty Midcap 150 indices trading lower by over 1%.