Mumbai, April 28 (IANS) Indian benchmark indices closed lower on Tuesday, tracking a sharp rise in global oil prices amid fresh geopolitical uncertainty in West Asia.

The Nifty and the Sensex both ended lower as investors turned cautious over escalating tensions involving the United States and Iran.

At the closing bell, Sensex was at 76,886.91, down by 416.72 points or 0.54 per cent. The Nifty was at 23,995.70, down by 97 points or 0.40 per cent.

Adani Ports, ITC, Bharti Airtel and Tech Mahindra among top gainers on Sensex. On the other hand, HCL Tech, Axis Bank, ICICI Bank and Infosys was among top laggards.

However, the broader markets showed resilience and outperformed the benchmarks. The Nifty MidCap and the Nifty SmallCap indices closed higher by 0.28 per cent and 0.42 per cent, respectively.

Sectorally, banking stocks remained under pressure, with the Nifty PSU Bank and the Nifty Bank emerging as the top laggards.

In contrast, oil-linked and commodity stocks gained traction, pushing the Nifty Oil & Gas and the Nifty Metal higher.

Investor sentiment was dampened after reports suggested that Donald Trump is dissatisfied with Iran’s recent proposal aimed at easing tensions.

According to reports, Iran has offered to reopen the strategically vital Strait of Hormuz but has reportedly avoided addressing its nuclear programme until hostilities in the region subside.

The uncertainty surrounding the potential deal kept oil markets on edge. Brent crude prices surged 2.78 per cent to $111.24 per barrel, as the Strait of Hormuz remained shut while the US evaluates Iran’s proposal.

Analysts said that the spike in crude prices weighed on domestic equities, as higher oil costs are seen as inflationary and negative for India’s import-heavy economy.

Meanwhile, Rupee traded weaker near 94.54, down around 0.37 rupee or 0.38 per cent, as sustained pressure from rising crude oil prices and continued FII outflows weighed on the currency.

–IANS

pk