Muted Start for Indian Equities as Geopolitical Jitters, Oil Surge Dent Sentiment; NIFTY50, SENSEX Open Lower Before Paring Losses

India’s benchmark indices began Wednesday’s session on a cautious note, with both the NIFTY50 and SENSEX opening marginally lower as investors weighed a fresh mix of global headwinds — from stalled US-Iran negotiations and a spike in crude oil prices to lackluster cues from Asian peers. As trading commenced at 9:15 am, the NIFTY50 slipped 0.14%, or roughly 33 points, to open at 23,880.35, compared to Tuesday’s close of 23,913.70, according to National Stock Exchange data. The 30-stock BSE SENSEX mirrored the softness, starting the day down 0.09%, or 69 points, at 75,939 versus the previous close of 76,009.70.
The initial weakness, however, proved short-lived. By 9:21 am, both indices had edged into positive territory, trading largely flat. The NIFTY50 was up 0.07% at 23,929.80 points, while the SENSEX gained 0.16% to touch 76,090 points, reflecting a quick shift in intraday sentiment.
Earlier, during the pre-market session, GIFT NIFTY futures in Ahmedabad hinted at the subdued mood, trading 0.08% lower at 23,894 points at 9:06 am. Market participants remain selective, focusing on stock-specific moves as the final phase of Q4 FY2025–26 corporate earnings plays out.
Investor caution was driven by three interlinked factors. First, crude oil prices remain volatile and elevated. Brent crude was trading above $95 per barrel in Wednesday’s session, compared to $96.64 at the previous close, per Investing.com. While oil has cooled nearly 5% over the past five sessions on easing global risk sentiment, traders remain wary of a sharp rebound if the third round of US-Iran talks collapses.
Second, geopolitical tensions in West Asia continue to cloud the outlook. Updates from US-Iran negotiations and fresh escalations around the Strait of Hormuz are keeping risk appetite in check, especially amid a fragile regional ceasefire. Market nerves were further tested after Lebanon’s Health Ministry said an Israeli airstrike on Tuesday killed 31 people and injured 40, despite the ongoing truce.
Third, foreign institutional investors turned sellers again on Tuesday, offloading ₹2,407.87 crore worth of equities in a single session, NSE provisional data showed. Domestic institutions provided some cushion with net purchases of ₹1,361 crore, but the support was not enough to prevent a negative close after Monday’s gains prompted profit booking.
Asian markets offered little comfort, trading weak on May 27 and adding to the cautious tone on Dalal Street. Traders are also tracking President Donald Trump’s Cabinet meeting scheduled for Wednesday, looking for any signal that could de-escalate the US-Iran conflict now in its 13th week since February 28.
Sector Movers: Metals, Power Lead; Energy, Financials Drag
In early trade, metal and power stocks lent support to the indices. Hindalco jumped 3.6%, emerging as the top NIFTY gainer. NTPC and Power Grid Corp. each rose 1.9%, followed by Eternal up 1.9%, Tech Mahindra up 0.91%, and Tata Steel up 0.7%.
On the flip side, energy and select financial names were under pressure. Coal India dropped 4% to lead losses, with ONGC down 3% as oil-linked counters reacted to price swings. HDFC Bank slipped 1.7%, HDFC Life Insurance shed 0.7%, Eicher Motors fell 0.6%, and BEL also declined 0.6%.