Indian equity benchmarks came under renewed selling pressure on Tuesday, September 29, with the Sensex falling more than 500 points and the Nifty slipping below the 22,700 level during early trade.

The US-Iran conflict remains a key global market concern, although diplomatic efforts are continuing. Mediators are holding separate discussions with US and Iranian officials as both sides explore possible terms for ending the conflict and easing restrictions around the Strait of Hormuz.

The Indian rupee weakened beyond the Rs.96-per-dollar mark on Tuesday, touching a two-month low of Rs.96.1450. Rising crude prices and concerns over energy supplies linked to the US-Iran conflict have added pressure to the currency, while foreign investors have continued to withdraw funds from Indian equities.

Oil exports from major Middle Eastern producers recovered in September as Saudi Arabia and the UAE increased shipments. Kpler data cited by Reuters showed regional crude exports reaching around 12.8 million barrels per day, the highest level since the US-Israeli war with Iran began in February.

Foreign portfolio investors have remained sellers in Indian equities during September. Earlier in the month, FPIs had withdrawn more than Rs.20,000 crore, with higher US rates, rising Treasury yields and elevated crude prices identified among the factors behind the selling.

Indian benchmark indices are expected to open lower on Monday after GIFT Nifty declined around 186 points to 23,263. The Nifty 50 had ended the previous week at 23,140.50, while the Sensex closed at 73,895.74.

Crude oil prices moved higher on Monday as uncertainty over a possible end to the US-Iran conflict increased. Brent crude rose around 1.6% to $106 a barrel, while US crude gained about 1.1% to $93.47.

Gold prices came under pressure on Monday as rising oil prices increased concerns about inflation and the possibility of higher US interest rates. Spot gold fell around 2.1% to $4,198.10 an ounce in early trading, putting the metal on track for one of its sharpest daily declines in September.

Silver also weakened on Monday amid the broader decline in precious metals. MCX December silver futures were down around 2.6% at approximately Rs.2,28,603 per kg in early trading. International silver prices also declined as the dollar and US yields strengthened.

Indian benchmark indices are expected to open slightly higher on Friday after a sharp sell-off in the previous session. GIFT Nifty was trading around 23,130, indicating a mildly positive start.