Indian stock indices slipped on Tuesday as a steep rise in global crude oil prices unsettled investors. Ongoing geopolitical tensions in West Asia, especially involving the United States and Iran, kept market sentiment subdued.

By the end of trading, the Sensex stood at 76,886.91, registering a decline of 416.72 points or 0.54 per cent. The Nifty closed at 23,995.70, down by 97 points or 0.40 per cent.

Some stocks recorded gains during the session, with Adani Ports, ITC, Bharti Airtel and Tech Mahindra featuring among the top performers on the Sensex. HCL Tech, Axis Bank, ICICI Bank and Infosys witnessed notable declines.

The wider market segments remained relatively strong despite weakness in the benchmarks. The Nifty MidCap index edged up by 0.28 per cent, while the Nifty SmallCap index gained 0.42 per cent.

Banking stocks faced sustained selling pressure, placing the Nifty PSU Bank and Nifty Bank indices among the biggest laggards. Conversely, oil-related and metal stocks advanced, pushing the Nifty Oil & Gas and Nifty Metal indices higher.

Market sentiment weakened after reports indicated that US President Donald Trump expressed dissatisfaction with Iran's recent proposal intended to reduce tensions. The lack of clarity around negotiations contributed to investor caution.

Reports suggested that Iran offered to reopen the crucial Strait of Hormuz. It, however, did not address its nuclear programme until tensions ease in the region.

Crude oil markets stayed volatile, with Brent crude rising 2.78 per cent to $111.24 per barrel. The ongoing closure of the Strait of Hormuz and uncertainty over diplomatic developments supported higher prices.

Experts pointed out that elevated crude prices tend to weigh on Indian equities, as increased import costs can drive inflation and impact economic stability.