Sensex today: Dalal Street opened the week on a cautious note, with benchmark indices slipping in early trade as fresh tensions around the Strait of Hormuz rattled investor confidence.
The pullback comes even as global markets showed strength and domestic fundamentals remained supportive, underlining how geopolitical risks are once again dictating short-term market direction.
The BSE Sensex was trading around 78,261, down 232 points or 0.29 per cent, while the NSE Nifty dropped over 100 points, or 0.46 per cent, to 24,241 amid selling pressure in sectors such as realty, metals and energy. Stocks including HDFC Life, Bajaj Finserv, HDFC Bank, Hindalco Industries, and Kotak Mahindra Bank were among the key laggards.
Analysts said the market continues to lack conviction despite underlying strength. “The broader message remains clear: momentum is building, but conviction continues to depend on global stability. Until greater clarity emerges on the geopolitical front, markets are likely to remain reactive, with opportunities driven more by tactical positioning than by a sustained directional trend,” they noted.
Strait of Hormuz flashpoint rattles sentiment
Fresh nervousness was triggered after Iran tightened restrictions on shipping through the Strait of Hormuz, reversing earlier signals of reopening. The move followed renewed friction with the United States over alleged violations of ceasefire conditions.
The Islamic Revolutionary Guard Corps warned that the crucial energy route would remain closed, cautioning vessels against movement in the Persian Gulf and Sea of Oman. “Therefore, from this evening, the Strait of Hormuz will be closed until this blockade is lifted,” the IRGC said, according to ANI.
The statement added, “We warn that no vessel should move from its anchorage in the Persian Gulf and the Sea of Oman, and approaching the Strait of Hormuz will be considered cooperation with the enemy, and the violating vessel will be targeted.”
The escalation has raised fresh doubts over the fragile ceasefire, especially after the United States said it had seized an Iranian cargo ship, prompting Tehran to warn of retaliation.
US President Donald Trump, meanwhile, dismissed Iran’s actions, saying it could not “blackmail” Washington by shutting the waterway.
Oil surges towards $100 mark
The geopolitical flare-up sent crude oil prices sharply higher, adding to inflation concerns and weighing on equity valuations.
Brent crude rose as much as 7.18 per cent to $96.87 per barrel, while US West Texas Intermediate (WTI) climbed 8.76 per cent to $91.20. Earlier in the day, Brent was seen trading around $94–98 per barrel range amid volatile swings.
On the domestic front, crude prices on the Multi Commodity Exchange jumped 6.72 per cent to Rs 8,289.
The spike in oil prices comes amid fears of supply disruption through the Strait of Hormuz.
Global cues stay positive but volatility rises
Despite the geopolitical uncertainty, global equity markets showed resilience. Asian indices, including Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI, were trading up to 1 per cent higher.
Wall Street had also ended the previous session on a strong note, with the S&P 500 rising 1.2 per cent and the Nasdaq gaining 1.52 per cent.
However, early signals from US futures indicated caution, with Dow Jones Futures falling over 360 points.
Market experts said the current phase reflects a gap between optimism around a possible diplomatic resolution and the reality of continued tensions.
Ajay Bagga told ANI that markets are navigating a “twilight zone” between last week’s rally and the looming ceasefire deadline. “We are seeing a classic ‘buy the rumor, wait for the signature’ pattern… ‘in-principle’ agreements are not the same as signed documents,” he said.
Institutional flows and outlook
On the institutional side, foreign investors remained net buyers in the previous session, picking up equities worth Rs 683 crore, while domestic institutional investors booked profits of Rs 4,721 crore.
Analysts expect markets to remain range-bound in the near term, with intermittent bouts of volatility. While underlying trends remain supportive, profit booking at higher levels and geopolitical headlines are likely to keep traders on edge.