Indian equity benchmarks experienced downward pressure, driven by weak global cues and foreign institutional outflows. Market sentiment was notably impacted by heightened geopolitical tensions following Israel’s military strike on Iran, which significantly increased risk aversion among investors. Although India’s CPI for May eased below the RBI’s comfort threshold—offering a positive macro signal—this was largely overshadowed by external headwinds. Brent crude prices climbed near $76/barrel, their highest this year, raising fears of inflation if tensions persist. Gold demand remains strong, reflecting a shift to safe-haven assets. In the near term, market sentiment is likely to stay cautious until geopolitical stability returns.