Benchmark indices opened lower on Wednesday morning as escalating West Asia tensions, elevated crude oil prices and the ongoing Reserve Bank of India monetary policy meeting kept investors on edge.The Sensex, which closed at 74,346.17 on Tuesday, opened at 73,935.83 and was trading at 74,101.39, down 244.78 points or 0.33 per cent, as of 9.30 am. The Nifty 50, which closed at 23,405.60 on Tuesday, opened at 23,282.45 and was last trading at 23,328.80, down 76.80 points or 0.33 per cent.“In the near-term, headwinds are stronger for the market than tailwinds... The continuing uncertainty in West Asia and the big and sustained FPI selling are the strong headwinds which are weighing on the market,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.The sell-off follows a sharp fall on Wall Street overnight, where the Dow Jones dropped over 1.2 per cent as rising US Treasury yields and fresh military exchanges between the United States and Iran rattled global investors. Asian markets tracked the weakness, with Japan’s Nikkei and South Korea’s Kospi trading in the red. Gift Nifty was trading around 23,317–23,318 ahead of the Indian open, signalling the gap-down start.Crude oil, a critical input for India’s import bill and inflation, continued to hold near $95–96 per barrel. “Higher energy prices not only impact corporate margins but also complicate the policy environment for the Reserve Bank of India,” said Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth. The Indian rupee remained under pressure, trading in the ₹95.6–₹95.8 range against the US dollar, with foreign fund outflows and a firm dollar limiting any recovery.The RBI’s Monetary Policy Committee is currently in session, with its rate decision due on Thursday. While rates are widely expected to remain unchanged, analysts say the central bank’s commentary will be more consequential. “Markets are increasingly focused on the RBI’s commentary rather than the rate decision itself... Any indication of concern around inflation, currency stability, or oil prices could reinforce a hawkish stance,” Hariprasad K added. Interest-rate-sensitive sectors including realty and banking are already reflecting this caution, with banking counters seeing heightened volatility ahead of the policy outcome.Foreign Institutional Investors have continued selling in recent sessions. “The aggressive short positions of the FPIs in the derivatives market indicate further potential downside unless there is an unexpected resolution to the West Asia crisis,” Vijayakumar said. Domestic Institutional Investors have remained consistent buyers, partially offsetting the foreign outflows. India VIX, the market’s fear gauge, rose 6.01 per cent to 16.28 in the previous session, reflecting elevated investor discomfort.Among Nifty 50 gainers, consumer and infrastructure stocks provided pockets of support. Eternal gained 1.38 per cent to ₹250.40, Adani Enterprises rose 1.35 per cent to ₹2,965.10, Titan added 1.25 per cent to ₹4,139.90, Tech Mahindra climbed 1.01 per cent to ₹1,487.10, and Adani Ports was up 0.91 per cent to ₹1,820.20.On the losing side, retail, IT, auto and metals were under pressure. Trent was the top loser, falling 2.07 per cent to ₹2,779.70. Infosys dropped 1.28 per cent to ₹1,207.00, Eicher Motors shed 1.21 per cent to ₹7,044.00, Hindalco declined 1.16 per cent to ₹1,125.70, and Tata Motors fell 1.04 per cent to ₹394.00.Technically, Nifty faces immediate resistance at 23,500–23,550, while 23,150 remains a key support level. A break below that level could push the index towards 23,000. Bank Nifty, which outperformed on Tuesday with a 0.9 per cent gain, faces resistance at 54,400 with support at 53,600. The Nifty Put-Call Ratio stands at 1.02, reflecting cautious positioning.“Trading in this volatile market amidst huge uncertainty would be extremely risky... Meanwhile, market weakness will offer buying opportunities in high-quality stocks under temporary pressure from FPI selling,” Vijayakumar said, pointing to beaten-down banks, pharmaceuticals and auto stocks as sectors worth watching for long-term investors.Ponmudi R, CEO of Enrich Money, noted that a proposal by the US Trade Representative to impose additional tariffs on imports from India, still under review, has added another layer of uncertainty to an already complex global environment. “Greater clarity from the RBI’s policy guidance, alongside developments on the geopolitical and trade fronts, is likely to play a decisive role in shaping the near-term direction of Indian markets,” he said.Published on June 4, 2026