Markets dip amid oil fears, West Asia conflict

Indian stock markets saw a second consecutive session of declines on Tuesday. Elevated crude oil prices hovering near $90 a barrel, coupled with persistent foreign institutional selling, contributed to the downturn. Escalating tensions in West Asia, as the US-Iran conflict entered its tenth day and Yemen's Houthis threatened a naval blockade on Saudi Arabia, further weighed on investor sentiment. The Nifty 50 closed at 24,187, down 0.21%, while the Sensex fell 238 points to 77,470.

However, the broader market presented a contrasting picture, with the Nifty Midcap 100 gaining 0.30% and the Nifty Smallcap 100 advancing 0.53%. Market breadth remained positive. Sectorally, Auto stocks rallied strongly following impressive quarterly results from companies like Bajaj Auto and TVS Motor. Conversely, PSU Banks, IT, and Oil & Gas sectors ended lower. The rupee saw a recovery, closing 21 paise higher against the dollar at 96.23.

Looking ahead, markets are anticipated to remain range-bound and stock-specific. Key earnings reports, including those from Adani Power and Nestlé India, along with the European Central Bank's policy decision and diplomatic developments concerning US-Iran relations, will be crucial for directional cues. Additionally, three mainboard IPOs are set to open this week, potentially influencing market activity.