Sensex, Nifty start in the red
The BSE Sensex slipped 0.2 percent, or nearly 160 points, at the opening bell, while the NSE Nifty 50 also fell around 0.2 percent during early trade.
However, benchmark indices recovered some of their initial losses as trading progressed. The Sensex briefly entered positive territory, while the Nifty hovered around the 24,100 mark.
Oil price surge fuels volatility
Market sentiment remained volatile as crude oil prices climbed, with investors closely monitoring the fragility of the ceasefire agreement between the United States and Iran.
Rising oil prices are a key concern for India, a major crude importer, as they can increase inflationary pressures and impact corporate profitability.
Asian markets also under pressure
The cautious mood was reflected across Asian markets, which traded lower on Tuesday amid ongoing geopolitical developments in the Middle East and concerns over their potential impact on global trade and energy supplies.
Why markets are watching the US-Iran situation
Global financial markets have been closely tracking developments between the United States and Iran following recent military escalations in the region.
Although a ceasefire announcement helped ease immediate concerns, investors remain wary about its sustainability.
Any disruption in the Middle East, a critical oil-producing region, can trigger sharp movements in crude prices and affect global economic growth prospects.
Consequently, equity markets worldwide have witnessed heightened volatility as traders assess the likelihood of a lasting peace agreement and its implications for energy markets.