Indian equities open under pressure as rising crude prices, geopolitical uncertainty and weakness in IT stocks weigh on investor sentiment; Nifty slips below 24,250 while Sensex trades near 77,400

Indian benchmark equity indices started Tuesday’s trading session on a weak note, with the Sensex declining nearly 300 points and the Nifty 50 slipping below the 24,250 mark. Rising oil prices amid renewed concerns over tensions involving the United States and Iran weighed on market sentiment, while selling pressure in information technology stocks added to the weakness.

At around 10:00 AM, the Sensex was down 291.02 points, or 0.37 per cent, at 77,437.14, while the Nifty 50 declined 58.55 points, or 0.24 per cent, to 24,229.10.

The market opened cautiously as investors remained concerned about the impact of elevated crude oil prices on inflation, corporate margins and India’s external balance. The IT sector emerged as the biggest drag during the early session, while Auto and Pharma stocks provided some support.

IT Stocks Lead Sectoral Decline

Information technology stocks came under significant selling pressure in Tuesday’s session. The Nifty IT index fell more than 1 per cent shortly after the opening bell, making it the weakest-performing major sectoral index.

Infosys, Mphasis and Coforge were among the prominent losers within the IT space. Infosys was also among the biggest drags on the Nifty 50.

The weakness in IT stocks comes as investors continue to assess the outlook for global technology spending, particularly against the backdrop of economic uncertainty in key overseas markets. Since a large portion of Indian IT companies’ revenues comes from international clients, changes in global corporate technology budgets, currency movements and macroeconomic conditions remain important factors for the sector.

Auto and Pharma Provide Some Cushion

While IT and Realty stocks remained under pressure, the Nifty Auto and Nifty Pharma indices outperformed during the early trading session.

The relative strength in these sectors helped limit the broader market decline. Investors appeared to favour defensive and domestically oriented pockets as uncertainty surrounding crude prices and geopolitical developments increased.

Pharmaceutical stocks, in particular, can attract defensive buying during periods of market volatility as investors seek sectors with relatively stable demand.

Crude Oil Prices Remain a Key Market Concern

The rise in crude oil prices remained one of the most important factors influencing investor sentiment on Tuesday.

Concerns over tensions involving the US and Iran and the wider West Asia region have increased uncertainty around global energy supplies. For India, a sustained increase in crude prices could have broader implications because the country remains heavily dependent on imported crude oil.

Higher oil prices can put pressure on India’s import bill and current account balance while potentially increasing inflationary risks. For companies, elevated energy and transportation costs can also affect margins in fuel-sensitive industries.

Investors are therefore closely monitoring developments in West Asia and their potential impact on crude oil markets.

Broader Market Shows Mixed Trend

The broader market also witnessed a cautious start, although performance remained mixed across segments.

At around 10:00 AM, the Nifty MidCap index declined 0.45 per cent, while the Nifty SmallCap index was marginally higher by 0.06 per cent.

Earlier in the session, the Nifty MidCap 100 had declined around 0.34 per cent, while the Nifty SmallCap 100 gained approximately 0.09 per cent.

The mixed performance suggests that while investors were reducing exposure to some large-cap sectors, selective buying remained visible in smaller companies and individual stocks.

PVR Inox Nears 52-Week High

Shares of PVR Inox attracted strong buying interest during Tuesday’s session and moved close to their 52-week high.

The stock gained momentum after the company’s management highlighted a strong performance in India’s cinema industry. According to the update, India's total box office collections grew around 20 per cent year-on-year.

The improvement in box-office collections has strengthened investor expectations around the recovery and growth potential of the organised cinema business. Sustained growth in movie releases, consumer spending and premium entertainment could remain important factors for the company’s performance.

Paytm Shares Slip After Block Deal

Shares of One 97 Communications, the listed parent of Paytm, declined more than 1 per cent during the morning session following a block deal.

Around 2.9 per cent of the company’s equity reportedly changed hands in the transaction, with Resilient Asset Management B.V. reported to have likely sold its stake.

Large block transactions can create short-term volatility in stocks as investors assess the identity of the seller, transaction size and potential implications for the company’s shareholding structure.

Ceigall India Falls After Delhi PWD Tender Cancellation

Shares of Ceigall India declined sharply during early trade after the Delhi Public Works Department cancelled a road-strengthening tender worth ₹330.84 crore.

The stock fell around 4.32 per cent to an intraday low of ₹302.30 on the National Stock Exchange.

The cancellation represents a negative development from an order-flow perspective and could weigh on investor sentiment toward the company in the near term. Investors will now watch whether the project is re-tendered and whether the company is able to secure new orders to maintain its growth trajectory.

Lloyds Engineering Gains on Italy Partnership

In contrast, Lloyds Engineering Works witnessed buying interest after its subsidiary, LADS, entered into a partnership with Italy-based Alpar Ingegneria.

The collaboration is aimed at developing defence products, facilitating technology transfer and enabling licensed manufacturing in India.

Shares of Lloyds Engineering gained around 2.7 per cent, touching an intraday high of ₹93.65 on the NSE.

The partnership could potentially strengthen the company’s capabilities in the defence manufacturing ecosystem, particularly as India continues to focus on domestic defence production and technology development.

Rupee and Bond Market Outlook Remain in Focus

The Indian rupee and domestic bond markets also remained on investors’ radar after the Reserve Bank of India closed a special programme aimed at attracting US dollar deposits from overseas Indians.

Analysts cited by Bloomberg expect the currency and bond markets to see more limited gains following the closure of the programme.

The rupee’s movement will remain particularly important for Indian equities because currency depreciation can benefit export-oriented IT companies in revenue terms but simultaneously increase the cost of imported commodities such as crude oil.

Investors Watch Institutional Flows and Global Cues

Market participants are likely to remain focused on foreign institutional investor flows, domestic institutional activity, crude oil prices and global equity market trends.

The domestic market has shown resilience in recent sessions, but elevated valuations in several segments mean that investors may remain selective. Any further increase in geopolitical risk or crude oil prices could lead to additional volatility.

At the same time, stronger domestic earnings, improving consumption trends and continued institutional participation could provide support to the market if global risks remain contained.

Market Outlook

The near-term market setup remains cautious to negative as rising crude prices and geopolitical uncertainty weigh on sentiment. The Nifty’s move below the 24,250 zone indicates that investors are adopting a defensive approach, while weakness in IT stocks is adding pressure to the benchmark.

For the Nifty 50, the 24,200 zone will remain an important near-term level to watch. Sustained weakness below this area could increase selling pressure, while a recovery above 24,300 may help stabilise sentiment.

The Sensex will also remain sensitive to movements in crude oil, global markets and large-cap IT stocks. Investors may therefore prefer to track sector rotation and stock-specific developments rather than take aggressive positions amid elevated uncertainty.

Overall, crude oil prices, US-Iran tensions, global cues, institutional flows and the performance of IT heavyweights are likely to remain the key drivers for Indian equities through the remainder of Tuesday’s trading session.