The Sensex declined as much as 223 points, or 0.28 per cent, to 77,146, while the Nifty fell 90 points, or 0.37 per cent, to 24,128 in early trade.

Metal, Oil & Gas Stocks Under Pressure

Among sectoral indices, Nifty Media, PSU Bank and Nifty Chemicals were the top gainers, rising up to 0.6 per cent.

On the other hand, Nifty Metal was the biggest laggard, declining 0.48 per cent, followed by Nifty Oil & Gas, which fell 0.4 per cent.

Nifty IT declined 0.37 per cent, while Nifty Auto and Nifty Realty slipped 0.32 per cent each. FMCG, healthcare, consumer durables and pharma stocks were also trading lower.

Nifty Range Seen at 24,100-24,500

Analysts expect the broader market to remain range-bound in the near term, with buying emerging at lower levels and selling at higher levels.

The near-term range for the Nifty is seen at 24,100-24,500.

Analysts said the previous session’s recovery in the closing hour could support a move towards 24,400. However, weakness below key support levels could increase selling pressure.

Market activity has remained focused on the midcap and smallcap segments, where corporate developments and positive news flow have continued to attract buying interest. Foreign institutional investors have also been participating in these segments despite valuation concerns.

Iran Sanctions, Crude Prices in Focus

Markets are closely tracking developments around US sanctions on Iran, which have added uncertainty to the crude oil outlook.

Analysts expect elevated oil prices to limit any sustained rally in domestic equities in the near term.

Crude oil prices steadied on Tuesday after declining sharply in the previous session as investors assessed the impact of tighter US sanctions on Iran and the threat of secondary sanctions against countries trading with Tehran.

Nifty Expiry Adds to Volatility

The monthly derivatives contracts for the Nifty 50 are scheduled to expire on Tuesday, adding to market volatility and investor caution.

In Monday’s session, foreign institutional investors turned net buyers and purchased equities worth Rs 1,181 crore.

Domestic institutional investors extended their buying streak for the 10th consecutive session, investing Rs 2,493 crore.