Oil prices remain a key factor weighing on Indian benchmark indices. Crude prices rose for a second consecutive session on Tuesday as concerns over potential disruptions to Middle East supplies due to the US-Iran conflict outweighed signs of recovering crude exports from the region.
Disruptions in the Strait of Hormuz have also continued for the seventh consecutive month, while a stalemate in US-Iran peace talks has added to supply concerns. Earlier, US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict.
Analysts said the surge in crude prices following the US-Iran stalemate, along with continued foreign fund outflows, a spike in US bond yields and weak Asian markets, triggered broad-based selling. Financials, PSU banks, metals, FMCG, oil and gas, and auto stocks came under pressure.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,693.93 crore on Friday, according to exchange data, adding to the pressure on domestic markets.
