Sensex Falls 250 Points, Nifty Tumbles Below 23,300 Amid US-Iran Deal Uncertainty

Market Volatility Continues as Uncertainty Surrounds US-Iran Deal

The domestic benchmark indices, Sensex and Nifty, traded lower on Tuesday, weighed down by uncertainty surrounding the US-Iran deal and a persistent outflow of foreign institutional investors (FIIs). As of 9:30 a.m., the Sensex had dropped 296.63 points or 0.4 percent to 73,972.98, while the broader Nifty was at 23,286.20, down 96.40 points or 0.41 percent.

The stalled peace talks between the U.S. and Iran have pushed energy prices higher, raising inflation concerns. This development has contributed to the ongoing market volatility, which has been exacerbated by a persistent outflow of FIIs. On Monday, FIIs sold equities worth Rs 3,911.68 crore, further pressuring the domestic markets.

Oil prices remained elevated on Tuesday, with Brent crude trading around $95 a barrel and U.S. crude hovering near $92. This surge in oil prices is a result of the previous session's surge of more than 4 percent.

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Market analysts have been closely monitoring the situation, with Anand James, Chief Market Strategist at Geojit Investments, providing insight into the market's trajectory. According to James, the market had gone into the previous session expecting the 23730-850 region to limit recovery attempts and force a turn lower, which would aim for 22800. The turn lower is now in play, and while a pause may be expected near 23126, it would require a direct rise above 23500 to shrug off bears.