The ongoing geopolitical uncertainty in the Middle East, particularly regarding the Strait of Hormuz, has led to elevated oil prices, which could strain India's fiscal position and increase inflationary pressures. This, in turn, may prompt the Reserve Bank of India to consider interest rate hikes. The market's cautious sentiment is further fueled by upcoming inflation data, which could influence monetary policy decisions. Key sectors such as IT and healthcare faced losses, while public sector banks showed resilience.