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The Indian benchmark indices jumped on Tuesday as the Sensex rose over 382 points to close trade at 74,649 and the Nifty ended more than 100 points to settle at 23,483 at 3:30 PM.

In the 30-share BSE Sensex, among the top gainers were stocks such as TCS, Infosys, HCLTech, Adani Ports and TechMahindra. Meanwhile, the laggards included stocks like Tata Steel, Sun Pharmaceuticals, Bajaj Finance, UltraCement and ICICI Bank.

In the broader markets, the Nifty Smallcap 500 gained 0.66 per cent as volatility reduced. Sectorally, the Nifty IT index rose 4.23 per cent and the Nifty Financial Services Ex-Bank declined 0.92 per cent.

Previously, during the early morning session, the BSE Sensex opened below 73,850, crashing more than 400 points, while the NSE Nifty50 started trading near 23,200, falling close to 150 points, as of 9:15 AM. 

US-Iran Negotiations Face Fresh Uncertainty

Investor sentiment remained fragile as diplomatic efforts involving the US and Iran continued to encounter hurdles, fuelling concerns over stability in West Asia and its potential impact on global markets.

According to Ponmudi R, CEO of Enrich Money, the prolonged uncertainty has weakened global risk appetite, prompting investors to adopt a more defensive stance amid fears surrounding regional security and possible disruptions to energy markets.

US President Donald Trump said he had persuaded Israeli Prime Minister Benjamin Netanyahu to cancel a planned strike on Beirut, following which the Israeli leader reportedly pulled back troops. Trump made the remarks on Truth Social on Monday evening amid reports of a heated exchange between the two leaders.

The development came after Iran reportedly threatened to halt negotiations with the US over Israel’s actions in Lebanon.

Asian Markets Decline As Investor Caution Deepens

Most major Asian markets traded lower on Tuesday as investors reacted to the worsening geopolitical backdrop.

Japan’s Nikkei 225 declined more than 1.5 per cent, while South Korea’s Kospi fell nearly 2.5 per cent. The broad-based weakness reflected growing concerns that tensions in West Asia may remain unresolved in the near term.

The cautious sentiment across regional markets also weighed on domestic pre-open indicators.

Wall Street Ends Higher Despite Geopolitical Concerns

US markets closed Monday’s session in positive territory, although gains remained limited.

The Dow Jones Industrial Average rose 0.09 per cent, while the S&P 500 gained 0.26 per cent. The Nasdaq Composite outperformed, ending 0.42 per cent higher.

Despite the positive close, investors globally remained focused on geopolitical developments and their potential implications for inflation, energy prices and economic growth.

Crude Oil Eases After Previous Session Gains

Oil prices slipped in early Asian trade after rising in the previous session.

Brent crude futures traded around $94.46 per barrel, down 0.55 per cent, as traders reassessed the outlook for supply disruptions and the possibility of further escalation in the region.

While the decline offered some relief, energy markets remained highly sensitive to developments involving the Strait of Hormuz, a key route for global oil shipments.

Gold, Silver Trade Lower

Precious metals also edged lower, with both gold and silver futures slipping in early trade.

The subdued movement reflected investor caution as markets awaited greater clarity on geopolitical developments and broader market direction.

Market sentiment is expected to remain closely tied to developments in West Asia, particularly updates on US-Iran relations and the status of the Strait of Hormuz.

Investors will also monitor crude oil prices, foreign fund activity and global market trends for further direction. While softer oil prices could provide some support, the broader market tone is likely to remain cautious until there is greater clarity on the geopolitical front.

With global uncertainty persisting, volatility may remain elevated throughout the trading session.

Foreign Outflows Continue To Pressure Domestic Markets

Domestic equities also remained under pressure from sustained foreign selling.

Foreign Institutional Investors (FIIs) sold shares worth Rs 3,911.68 crore on Monday, according to exchange data.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said several global trends remained intact, including the continued AI-driven rally, fresh market records in the US, South Korea and Taiwan, and persistent foreign portfolio investor selling in India.

He added that India’s relative underperformance showed little sign of reversing in the near term.