Sensex drops 155 pts; PSU bank shares decline

The frontline equity benchmarks traded with moderate losses in mid-morning trade, weighed down by a mix of global and domestic headwinds. Investor sentiment weakened after fresh geopolitical tensions emerged following U.S. President Donald Trump?s renewed threats toward Iran, which pushed oil prices higher and heightened market anxiety.

Markets are volatile due to the weekly expiry of Nifty 50 contracts, the first in the April series. Amid this uncertainty, the Nifty slipped below the 22,950 mark in mid-morning trade. PSU bank stocks declined after advancing in the previous trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex, fell 155.4 points or 0.21% to 73,951.81. The Nifty 50 index slipped 44.65 points or 0.19% to 22,923.60.

In the broader market, the BSE 150 MidCap Index declined 0.43% and the BSE 250 SmallCap Index rose 0.18%.

The market breadth was strong. On the BSE, 2,425 shares rose and 1,444 shares fell. A total of 183 shares were unchanged.

Monsoon Forecast:

Private weather forecaster Skymet expects India?s 2026 monsoon to be below normal at around 94% of the long-period average, with El Ni?o likely to strengthen and disrupt rainfall in the second half of the season. While June could begin on a stable note, rains are expected to turn erratic from July to September, with central and north-west regions facing deficits, even as eastern and northeastern parts fare relatively better.

Buzzing Index:

The Nifty PSU Bank index dropped 1.46% to 8,202.20. The index surged 2.33% in the past trading session.

Bank of India (down 3.31%), Union Bank of India (down 2.95%), Punjab National Bank (down 1.98%), Indian Bank (down 1.48%), Bank of Baroda (down 1.30%), State Bank of India (down 1.28%), Canara Bank (down 1.20%), Bank of Maharashtra (down 0.65%), Central Bank of India (down 0.56%) and Punjab & Sind Bank (down 0.30%).

Stocks in Spotlight:

CreditAccess Grameen rallied 3.61% after the microfinance lender reported a strong operational performance for FY26, led by healthy disbursement growth, portfolio expansion and improvement in asset quality.

Lodha Developers rose 0.43%. The company said that the company has recorded quarterly pre-sales of Rs 5,890 crore in Q4 FY26, which is higher by 23% as compared with the pre-sales of Rs 4,810 crore registered in Q4 FY25.

Sharda Cropchem jumped 4% after seasoned investor Dolly Khanna appeared in the company's latest shareholding pattern. As of March 2026, Dolly Khanna held 9,82,178 shares, representing a 1.09% equity stake in the company. Her name did not feature in the shareholding data for the previous quarter.

Global Markets:

Asia markets whipsawed in volatile trading on Tuesday, with major indexes flipping to losses in the morning session, as traders assess Iran war-related developments.

U.S. President Donald Trump threatened to target Iran?s civilian infrastructure if a peace deal is not reached in less than 24 hours, while also signaling that the Iranian leadership was negotiating in earnest.

Trump reiterated his demand for Iran to open the Strait of Hormuz by 8 p.m. Tuesday, which would allow traffic to start flowing again through the vital route for global energy supplies ? warning the U.S. would decimate every bridge and power plant within four hours of that deadline not being met.

The U.S. and Iran are weighing a framework plan to end their 5-week-old conflict, with Tehran pushing back against Trump?s pressure to swiftly reopen the Strait of Hormuz under a temporary ceasefire, and repeating its demand for a lasting end to the war.

Iran has rejected the U.S. ceasefire proposal and floated its own 10 points, including an end to hostilities in the region, a protocol for safe passage through the Strait of Hormuz, lifting of sanctions, and reconstruction, according to Axios.

Overnight on Wall Street, the S&P 500 rose on Monday for a fourth session as oil prices teetered and traders hoped that the U.S.-Iran war could end soon.

The broad market index added 0.44% to close at 6,611.83, while the Nasdaq Composite gained 0.54% and ended at 21,996.34. The Dow Jones Industrial Average climbed about 165.21 points, or 0.36%, to settle at 46,669.88.