Despite the recent US strikes on Iran that saw Indian markets slip at open, benchmark indices Sensex and Nifty quickly recovered but stayed in a state of flux. Before 11 am, the Sensex rose to a high of 76,627.04, while the Nifty maxxed at 24,089.80.
Both the indices were trading in a flat to 0.15 per cent gain window on average, reversing the morning dip for now. US Secretary of State Marco Rubio, who is in India for the Quad meeting, stated that it would "take a few days" to negotiate a deal with Iran.
Analysts and market watchers said that the latest US strikes in West Asia dented investor optimism on the potential US-Iran peace deal.
The war thousands of kilometres away has affected the world's third-largest oil importer and consumer, as it raised the prices of petrol and diesel for the fourth time this month.
The latest US strikes also pushed Brent crude futures a little over 2 per cent to about $98 a barrel.
Eternal, Infosys, Tech Mahindra, Maruti, and Hindustan Unilever were the gainers in the morning trade at the Sensex. Sun Pharma, IndiGo, Airtel, TCS and Kotak Bank were the major laggards.
It remains to be seen if the Sensex and Nifty can hold their ground through the day, especially since the rupee slipped by 17 paise to 95.43 against the dollar in early Tuesday trade on month-end dollar demand and rising crude oil prices. The outcomes of the meeting of the Quad group's foreign ministers on Tuesday in India is also expected to factor in on the later movements of the market.
