Indian Markets Open Lower Despite US-Iran Ceasefire Extension; Oil Below $90

The Nifty 50 slipped around 120 points to 24455.90 points in early trade, down 0.5 per cent , while the BSE Sensex shed around 480 points to 78,766.65 points. Most major sectoral indices traded lower with the Nifty IT index under pressure following weak earnings from HCL Tech and Tata Elxsi, mirroring the broader risk-off mood.

Asian markets opened mixed, with Japan's Nikkei 225 hitting a fresh record of 59,691 on strong March trade data, but the Topix lost 0.60 per cent. US futures rose after President Donald Trump announced an indefinite extension of the two-week Gulf ceasefire, though the dollar edged lower and oil pared early gains.

S&P 500 and Nasdaq 100 futures climbed 0.4 per cent each in early trade, while Dow Jones Industrial Average futures advanced 190 points, or 0.4 per cent. In Tuesday's regular session, the S&P 500 slipped 0.63 per cent to end at 7,064.01, the Nasdaq Composite fell 0.59 per cent to 24,259.96, and the Dow lost 293.18 points, or 0.59 per cent, to close at 49,149.38.

Market expert Ajay Bagga said the "cautious but generally positive bias" in Asia is being tested by the high-stakes standoff in West Asia. "Trump extended the 2-week ceasefire in the Gulf to an indefinite period. Iran has refused to join the second round of Iran-US negotiations so far. The US continues its blockade of the Strait of Hormuz which entails a significant cost of $500 million per day for the Iranian economy," he said. Iran has made lifting the blockade a precondition for rejoining talks, while the US Treasury Secretary warned that Tehran is "soon running out of crude oil storage and needs to strike a deal at the earliest."

Bagga flagged that while markets had been pricing in an imminent end to the conflict, oil is still reflecting a 10 million barrels per day disruption that is now in its 54th day. "Second order effects on economic growth, inflation, currencies and trade are now going to set in if this disruption continues," he said. He expects Nifty to consolidate between 23,800 and 24,500 until there is clarity. "As a major oil importer, India faces major economic damage from higher oil prices. For now the damage has been contained as the government has kept petrol and diesel prices at pre-war levels but that could change next week as state election polling ends."

Oil futures slipped after the initial bounce. West Texas Intermediate was 0.28 per cent lower at $89.42 per barrel, while Brent crude fell 0.29per cent to $98.19 per barrel.

Sunny Agrawal, head of research, SBI Securities, said the global backdrop remains tense as "uncertainty persists over the exact expiry of the US-Iran ceasefire and Tehran's willingness to join the next round of negotiations."

Investors will now watch the RBI MPC Meeting Minutes and the UK's March 2026 CPI and Core CPI data, both due on April 22, for further directional cues.

- ANI