Sensex, Nifty Open Flat as US-Iran War Tensions Keep Investors Cautious

The Indian equity indices, which have been in a losing streak for the past few days, were seen underperforming as the investors continue to sell from the country and crude oil prices keep climbing up in recent days.Meanwhile, Indian benchmark equity indexes started to fall on Tuesday as they continued to lose ground despite the persistence of worries over the ongoing Middle East conflict, crude oil prices and foreign investors selling.

The BSE Sensex opened at 73,878.22, down 389.12 points or 0.52 per cent, while the NSE Nifty 50 slipped 153.45 points, or 0.66 per cent, to 23,229.15 in early trade.

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The inadequate opening was followed by Nifty futures trading in the doleshark, suggesting investors' lack of confidence amid the global and domestic challenges.

In the current atmosphere of Middle East conflict, investors remain cautious

The Middle East conflict and the uncertainty of the process to reach a negotiated solution has been weighing on investor sentiment. Energy prices remained high after negotiations between the United States and Iran stalled around $94 a barrel for Brent crude futures.

India, one of the world's biggest oil importers, is concerned about the higher crude prices as it can exacerbate inflation, increase import expenses and have a negative impact on economic growth.

The market already has experienced a lot of weakness in the recent sessions. The Nifty 50 index has shed nearly 2.7 per cent in the past four trading sessions, the Sensex has lost nearly 2.9 per cent in the same timeframe.

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Foreign investors keep on selling

Foreign institutional investors (FIIs) were net sellers on Monday, selling equities valued at ₹3,912 crore, provisional data on the exchanges showed.

So far in 2026, overseas investors have pulled out some $26.4 billion from Indian stocks, which is more than the record annual outflows of $18.91 billion in 2025. Foreign investors' continuous selling activity has put pressure on the domestic markets and the rupee, analysts say.

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