Stock markets close lower amid escalation in Israel-Iran conflict, US tariff scare

Benchmark Sensex dropped by 212 points on Tuesday due to profit-taking in metal, oil and gas and pharma shares as investors turned cautious due to increased tensions in the Middle East.

The 30-share BSE Sensex declined 212.85 points or 0.26 per cent to settle at 81,583.30. During the day, it dropped 369.14 points or 0.45 per cent to 81,427.01.

The 50-share NSE Nifty dropped 93.10 points or 0.37 per cent to 24,853.40.

Investors preferred to stay on the sidelines due to rising global crude oil prices and the upcoming US Fed interest rate decision later this week, according to experts.

Pharma shares also came under pressure after reports stated that US President Donald Trump has warned that tariffs on pharmaceuticals and semiconductor products would be announced shortly.

Sun Pharma emerged as the biggest loser among Sensex shares, dropping by 2.18 per cent. Eternal, Tata Motors, Bajaj Finance, IndusInd Bank and Bajaj Finserv were also among the laggards.

In contrast, Tech Mahindra, Infosys, Asian Paints and Maruti were among the gainers.

Israel appeared to be expanding its air campaign on Tehran as US President Donald Trump posted an ominous message warning residents of the capital to evacuate.

The BSE small cap gauge dropped 0.67 per cent and midcap index declined 0.56 per cent.