MUMBAI: Market benchmark indices Sensex and Nifty declined in early trade on Tuesday amid renewed escalation in the US-Iran standoff and elevated crude oil prices.
The 30-share BSE Sensex was down 30 points to 77,336.32 in early trade. The 50-share NSE Nifty dipped 38.80 points to 24,179.50.
Later, the BSE benchmark traded 139.96 points lower at 77,235.23, and the Nifty was down 66.75 points to 24,162.50.
Among the 30 Sensex firms, HCL Tech, Tech Mahindra, Maruti, NTPC, Power Grid and Bajaj Finance were among the major laggards.
Trent, Adani Ports, ICICI Bank and Bharat Electronics were among the major winners.
Brent crude, the global oil benchmark, traded 0.35 per cent higher at USD 92.49 per barrel.
"The US has launched what it calls an 'Economic D-Day' against Iran, with Treasury Secretary Scott Bessent announcing a sweeping new sanctions campaign that marks an intensification of economic pressure on Tehran," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
The latest escalation in the US-Iran standoff follows the expiry of the 60-day ceasefire window, with no further talks currently planned, he added.
In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower, while Japan's Nikkei 225 quoted higher.
US markets ended mostly lower on Monday.
"Indian markets are expected to witness heightened volatility as weakness across global equities amid renewed escalation in the US-Iran standoff, coupled with monthly expiry-related rollovers and positioning, could lead to sharper-than-usual price swings, particularly during the final hour of trading," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,181.66 crore on Monday, according to exchange data.
On Monday, the Sensex declined 171.72 points, or 0.22 per cent, to settle at 77,369.11. The Nifty slipped 32.95 points, or 0.14 per cent, to end at 24,219.05.