Indian benchmark indices closed lower on Tuesday as escalating geopolitical tensions in the Middle East drove crude oil prices higher, reigniting fears over inflation and economic headwinds for the world's third-largest energy importer.
The Nifty 50 fell 0.54%, while the broader BSE Sensex declined 0.62%.
Heavyweight stocks led the downturn, reflecting broad-based selling pressure as investors reassessed risk amid rising energy costs.
The market move underscores the sensitivity of Indian equities to external supply shocks.
Higher oil prices threaten to widen the current account deficit and complicate the Reserve Bank of India's inflation management, potentially limiting the scope for aggressive monetary easing in the near term.
Analysts are closely monitoring the trajectory of Brent crude and the potential for further escalation in the region.