Stock markets decline as renewed geopolitical concerns weigh on investor sentiment

Mumbai: Benchmark indices Sensex and Nifty buckled under selling pressure on Tuesday as fresh tensions flared in the Strait of Hormuz region and the ceasefire between the US and Iran came under strain.

The rupee hitting a record low against the US dollar amid elevated crude prices also made investors cautious.

In a volatile session, the 30-share BSE Sensex dropped 251.61 points, or 0.33 per cent, to settle at 77,017.79. During the day, it tanked 754.37 points, or 0.97 per cent, to 76,515.03.

The 50-share NSE Nifty edged lower by 86.50 points, or 0.36 per cent, to end at 24,032.80.

From the Sensex firms, ICICI Bank, Eternal, Tech Mahindra, Axis Bank, Bharti Airtel and Larsen & Toubro were among the major laggards.

On the other hand, Mahindra & Mahindra, UltraTech Cement, Bajaj Finserv and Bajaj Finance were major winners.

"Domestic equities witnessed a volatile session, closing lower as post-election optimism faded and sentiment re-aligned with global weakness amid rising geopolitical tensions.

"Elevated crude prices continued to pressure the rupee, which slipped to record lows. Despite these headwinds, the ongoing earnings season, with results slightly ahead of expectations, provided some support and triggered selective bottom-fishing," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Brent crude, the global oil benchmark, traded around the USD 113 per barrel mark.

Meanwhile, the rupee slipped 2 paise to an all-time low of 95.25 (provisional) against the US dollar on Tuesday.

Markets were closed in South Korea, Japan and mainland China. Hong Kong's Hang Seng index ended lower.

Markets in Europe were trading mostly higher. US markets ended lower on Monday.

Foreign Institutional Investors (FIIs) turned buyers on Monday, buying equities worth Rs 2,835.62 crore, according to exchange data.

In a mandate as sweeping as it is symbolic, the BJP on Monday scripted history by winning 206 seats to secure more than a two-thirds majority in the West Bengal assembly polls, ending the TMC's 15-year rule, and decisively shifting the state's ideological and political centre of gravity.

On Monday, the Sensex climbed 355.90 points, or 0.46 per cent, to settle at 77,269.40. The Nifty rallied 121.75 points, or 0.51 per cent, to end at 24,119.30.