Sensex plunges 555 pts; Nifty settles at 23,635
Indian equity benchmarks extended losses to the second consecutive session on Tuesday, with the Nifty 50 closing at 23,635.10, down 144.05 points or 0.61% — its lowest level since mid-June. The BSE Sensex tumbled 555.23 points, or 0.73%, to close at 75,577.58, dragged by banking heavyweights and rising crude oil prices.

Key Driver: Escalating US-Iran tensions pushed Brent crude above $97 per barrel — trading near $97.20 — keeping investors cautious. Banking stocks bore the brunt, with ICICI Bank falling nearly 2%, Axis Bank down 1.7%, and HDFC Bank declining 1.1%.

Intraday Picture: The Nifty opened lower and remained under pressure throughout the session, hitting an intraday low near 23,550 before recovering slightly. Unlike Thursday's recovery attempt, the index failed to reclaim higher levels as selling intensified in financials and FMCG stocks.

Oil prices remained elevated, with Brent crude trading near $97.20 per barrel as weekend US strikes on Iranian tankers and Tehran's missile retaliation deepened fears of supply disruption through the Strait of Hormuz. Goldman Sachs projects Brent could reach $120 if attacks on vessels widen.

Outlook: Higher crude poses a risk to India's inflation and current account deficit. Markets will closely monitor US-Iran diplomatic developments and any further escalation.

The rupee opened flat at 94.51 and traded around 94.70-94.73, caught between pressure from higher oil prices and dollar demand from importers. The RBI's persistent presence in the market kept the rupee from sliding sharply.

India VIX climbed 0.68% to 11.16, with a session range of 10.45–11.39, indicating a slight rise in market anxiety amid geopolitical tensions.

FII/DII Flows: FIIs were net buyers of ₹1,280 crore in equities on Tuesday, with gross buying of ₹10,678 crore against gross selling of ₹9,398 crore. DIIs also remained supportive, though buying was selective.