Domestic equity markets closed lower today. Sharp early losses were partly recovered but not fully erased by the end of trade.
In today’s trade, the Sensex ended at 76,847.57, down 702.68 points or 0.91%,. On the other side, the nifty ended at 23,842.65, falling 207.95 points or 0.86%.
“Markets continue to derive limited support from last week’s ceasefire framework, which remains intact for now and is encouraging selective buying interest along with a buy-on-dips approach. This comes despite an initial negative reaction to the breakdown of US–Iran peace talks and the announcement of a US naval blockade in the Strait of Hormuz, which pushed crude prices above $100/bbl. Elevated oil prices are raising concerns around inflation, currency stability, and broader macro balances, thereby weighing on overall sentiment,” said Vinod Nair, Head of Research, Geojit Investments.
“On the domestic front, the Q4 earnings season is now underway, leading to stock-specific activity, although overall risk appetite remains cautious amid global uncertainty. While the immediate impact on Q4 earnings is expected to be manageable, prolonged Middle East tensions could have more meaningful implications for Q1FY27. Volatility is likely to remain elevated, with markets closely tracking geopolitical developments alongside earnings quality and management commentary,” he added.
Let’s take a look at the key highlights of today’s trading session –
Heavyweight stocks under pressure
Selling was seen in key index stocks during the session. HDFC Bank fell 2%, while Reliance Industries slipped 2.6%. IndiGo declined 3%, Bajaj Finance also lost 3%, and Maruti Suzuki India dropped 5%, making it one of the top laggards.
Middle East tension impact sentiment
Markets reacted to rising geopolitical tension after reports that US President Donald Trump ordered US military forces to block the Strait of Hormuz Strait of Hormuzand clear suspected sea mines.
This came after weekend peace talks in Islamabad, brokered by Pakistan, failed to reach any agreement, increasing uncertainty in global markets.
Crude oil jumps above $100 mark
Oil prices rose sharply after the developments. Brent crude futures climbed more than 8%, while West Texas Intermediate (WTI) crude surged nearly 9% to about $105 per barrel.
The move came after crude had earlier hovered near $95 last week on hopes of a peace deal.
Rupee weakens against US dollar
The Indian rupee also came under pressure and fell 0.7% to 93.38 against the US dollar.
