Indian shares experienced volatility, ultimately closing nearly unchanged on Tuesday. This market behavior reflected a mix of escalating tensions in the Middle East and anticipation of further interest rate cuts by the U.S. Federal Reserve, along with China's newly announced stimulus measures.
Oil prices surged by over 2 percent in European trading, spurred by Israel's most extensive aerial offensive against the Iran-backed Shia militant group Hezbollah.
The Israeli military reported hitting numerous Hezbollah targets in southern Lebanon overnight, following a much larger wave of airstrikes the previous day, which resulted in the deadliest day in decades for the region.
In response, Hezbollah claimed responsibility for targeting several Israeli military sites, including an explosives factory located 60 kilometers (37 miles) inside Israel, using Fadi series rockets.
This marked escalation in the Israel-Hezbollah conflict overshadowed the substantial interest rate cut announced by the U.S. Federal Reserve last week and the array of stimulus initiatives launched by China's central bank aimed at boosting economic growth.
The benchmark BSE Sensex, comprising 30 shares, fluctuated before closing down by 14.57 points at 84,914.04. Similarly, the broader NSE Nifty index ended marginally in positive territory at 25,940.40.
Metal stocks witnessed significant gains, with Hindalco and Tata Steel jumping over 4 percent, buoyed by China's stimulus news.
Meanwhile, Adani Enterprises, Tech Mahindra, and Power Grid Corp climbed by 2-3 percent. In contrast, UltraTech Cement, Grasim, Hindustan Unilever, and SI Life saw declines of 2-3 percent.
