Sensex, Nifty Open Flat as Fresh US Strikes on Iran Offset Peace Deal Hopes

Mumbai, May 26: Domestic equity benchmarks opened on a flat note on Tuesday, with the Sensex and Nifty holding steady near Monday’s closing levels as fresh US military strikes on Iran overnight tempered the peace deal optimism that had driven a 1,000-point Sensex rally the previous session, leaving investors in a cautious wait-and-watch mode even as diplomatic talks continued in Doha.

The BSE Sensex was trading at 76,479.20, down just 9.76 points or 0.01%, while the Nifty 50 edged up a marginal 6.30 points or 0.03% to4,038.00 as of 9:30 am a remarkably composed open given the overnight geopolitical turbulence, reflecting the market’s ability to distinguish between short-term noise and the underlying direction of US-Iran negotiations.

US-Iran Conflict

The subdued start followed US Central Command conducting fresh strikes on Monday in southern Iran targeting boats attempting to lay mines and missile launch sites, even as Iran’s top negotiator and foreign minister were simultaneously in Doha for talks with Qatar’s prime minister on a potential peace deal. Adding a more constructive dimension to the narrative, the Nikkei newspaper reported citing a Middle East diplomatic source that both sides are discussing a framework under which the Strait of Hormuz would be reopened approximately 30 days after a deal is reached, with Iran clearing mines during that window, ships from all countries navigating freely thereafter, and a 60-day ceasefire extension allowing nuclear talks to proceed a report that prevented a sharper selloff in Tuesday’s opening trade.

Gainers & Losers

Among Nifty 50 gainers in early trade, Eternal led with a 1.66% advance to an LTP of ₹251.79 from its previous close of ₹247.67, while ONGC rose 1.42% to ₹289.00 from ₹284.95 a notable reversal that put the upstream oil major in the green ahead of its quarterly results announcement. Coal India gained 1.33% to ₹464.10 from ₹458.00, Hindalco added 1.30% to ₹1,113.90 from ₹1,099.60, and Infosys edged up 0.83% to ₹1,178.20 from ₹1,168.50.

On the losing side, Max Healthcare slipped 0.94% to ₹991.40 from ₹1,000.85, Tata Consumer Products fell 0.70% to ₹1,178.90 from ₹1,187.20, Titan declined 0.65% to ₹4,132.30 from ₹4,159.20, Trent eased 0.60% to ₹4,274.00 from ₹4,300.00, and SBI Life Insurance dipped 0.55% to ₹1,891.40 from ₹1,901.90.

Broader & Sectoral Markets

In the broader market, Nifty Smallcap 100 rose 0.87% to 18,361.45, Nifty Midcap 100 gained 0.17% to 62,069.55, and Nifty 500 advanced 0.20% to 22,975.20, indicating healthy participation beyond the large-cap space.

On the sectoral front, Nifty Metal led with a 0.81% advance to 13,453.95, Nifty PSU Bank gained 0.42% to 8,272.60, and Nifty Bank rose 0.27% to 55,444.40, while Nifty Consumer Durables fell 0.55% to 35,476.45, Nifty Healthcare declined 0.36% to 15,648.70, and Nifty FMCG slipped 0.20% to 50,055.20.

Asian & US Markets

Asian markets were mixed on Tuesday morning, with Hong Kong’s Hang Seng rising 0.33% to 25,690.63 and Indonesia’s JSX Composite advancing 0.72% to 6,206.35, while Japan’s Nikkei 225 fell 0.40% to 64,897.64 and Australia’s ASX All Ordinaries declined 0.55% to 8,866.00. US markets closed largely positive on Monday, with the Dow Jones Industrial Average ending 0.58% higher at 50,579.70 and the S&P 500 gaining 0.37% to 7,473.47, though there was no oil futures settlement due to the Memorial Day holiday.

Oil Prices

Oil prices recovered in early Asian trade on Tuesday, with Brent crude rising more than 1% to $97.32 a barrel after Monday’s sharp more-than-5% plunge that had dragged it below $100, as the fresh US strikes reignited supply disruption fears. WTI crude edged up marginally from Monday’s last traded price but remained about 5.5% below Friday’s close, with no settlement recorded on Monday due to the US holiday. The partial crude recovery kept energy stocks under modest pressure at the open even as the broader market held firm.

Monday Session

Indian benchmark indices closed sharply higher on Monday, with the Sensex surging 1,074 points or 1.42% to 76,488.96 and the Nifty 50 advancing 312.40 points or 1.32% to settle at 24,031.70 reclaiming the psychologically important 24,000 mark for the first time in recent sessions. The rally was broad-based, with 15 of 16 major sectoral indices ending in the green, led by oil marketing companies that surged as crude’s more than 5% plunge improved marketing margin hopes after a string of retail fuel price hikes. Tuesday’s flat open consolidates those gains, with the Strait of Hormuz framework report and the trajectory of US-Iran diplomatic talks remaining the twin pivots for the session’s direction.

Sources:

• https://www.nseindia.com/market-data/live-market-indices
• https://www.nseindia.com/market-data/top-gainers-losers
• bseindia.com