Global Tensions Weigh on Indian Markets amid US-Iran Nuclear Talks

The Indian stock markets embarked on a turbulent journey on Tuesday, opening amid heightened tensions between the United States and Iran as the two nations initiated indirect nuclear discussions in Geneva. The looming geopolitical uncertainties weighed heavily on global markets, dragging down investor sentiment and resulting in declines in benchmark indices at the session's commencement.

The Nifty 50 index kicked off trading at 25,637.95, marking a fall of 44.80 points or 0.17%, while the BSE Sensex started at 83,197.67, dipping by 79.48 points or 0.10%. Analysts pointed out that the current geopolitical developments are having a significant impact on market sentiment worldwide.

According to Ajay Bagga, a Banking and Market Expert, "Iran is dominating the markets with expectations of failed talks, while the key question remains whether Arab states would align with a potential US strike. Oil markets are reflecting this geopolitical risk, affecting Asia's sentiment alongside a faltering Indian Gift Nifty, despite a strong start on Monday. Global investors are advised to brace for a volatile trading day due to the ongoing Iran situation." This latest US-Iran conflict illustrates a combination of diplomatic engagement and military strategies. The two nations began indirect nuclear talks in Geneva on February 17 to negotiate sanctions relief, while the US simultaneously mobilized two aircraft carrier strike groups in the region to maintain pressure. This scenario has heightened global investor caution.

Commodity markets showed little movement on Tuesday. Gold prices remained nearly static, with 24 karat gold priced at Rs 153628 per 10 grams, and silver at Rs 235752 per kg, indicative of stable but cautious investor attitudes. Broader NSE market indices also reflected weakness; the Nifty 100 index fell by 0.26%, and the Nifty Midcap 100 dropped by 0.18%. Another broader index declined by 0.11%, signaling prudence across market segments.

Sectoral performances presented a mixed bag. Nifty Auto decreased by 0.47%, Nifty IT experienced a slight downturn of 0.12%, and steep declines were seen in Nifty Metal, dropping by 0.76%. Nifty Pharma decreased by 0.21%, and Nifty PSU Bank by 0.09%. On a brighter note, Nifty FMCG rose by 0.22%, and Nifty Media climbed by 0.06%. Ponmudi R, CEO of Enrich Money, indicated that despite Monday's strong rebound led by financials, energy, and healthcare, the Indian stock market opened steady underpinned by robust domestic inflows, counteracting foreign outflows. However, sentiment remains watchful, triggering potential range-bound and volatile trading until new domestic or global developments provide clearer market direction.

Elsewhere in Asia, market trends were varied. Japan's Nikkei 225 index saw a notable decline of over 1% to 56,214, while Singapore's Straits Times index inched up by 0.02% to 4,938. Meanwhile, the Hang Seng index in Hong Kong rose by 0.52% to 26,705. Markets in Taiwan and South Korea were closed due to holidays. In the US markets, the S&P 500 index edged up by 0.05% to 6,836, while the Nasdaq slipped by 0.22% to 22,546. (ANI)