Indian equity benchmarks, Sensex and Nifty 50, are set for a cautious opening on Tuesday. Despite the euphoria of recent domestic election results, a combination of escalating US-Iran military tensions and weak global cues is expected to dampen investor sentiment.

The international landscape is currently dominated by risk-aversion:

The primary driver of the current market anxiety is the direct military exchange between the US and Iran.

While global cues are negative, the market is still processing the significant political shifts from the state assembly elections: