Key keywords: Indian stock market, Nifty 50, BSE Sensex, Mideast geopolitical risks, foreign institutional investor inflows, Q3 corporate earnings, Brent crude prices, 4-session losing streak, domestic retail investors On Tuesday, India’s benchmark equity indices snapped a four-session losing streak, driven by strong buying in banking, information technology and pharmaceutical stocks, though gains were capped by lingering concerns over escalating tensions in the Middle East that could roil global energy markets and cross-border capital flows. The BSE Sensex closed 0.62% higher, or 486.32 points, at 78,832.79, while the broader NSE Nifty 50 rose 0.58%, or 134.75 points, to end at 23,686.80. The two main indices had lost nearly 2.1% over the previous four trading sessions, dragged by profit booking at recent record highs and sustained sell-offs by foreign institutional investors (FIIs) spooked by rising U.S. Treasury yields and widening geopolitical uncertainty across West Asia. The rebound on the day was fueled by better-than-expected quarterly earnings from top blue-chip companies, including HDFC Bank, Tata Consultancy Services and Sun Pharma, all of which beat analyst estimates on both top-line revenue and adjusted profit margins. Domestic retail investors continued to provide strong underlying support to the market, with systematic investment plan (SIP) inflows hitting a fresh record of ₹20,245 crore in September, according to official data from the Association of Mutual Funds in India. Small and mid-cap indices also outperformed the benchmark on Tuesday, rising 0.81% and 0.94% respectively, as retail buyers targeted high-growth domestic-focused stocks. However, gains remained limited through the trading session as investors remained cautious over the escalating conflict between Israel and Iran, which has raised widespread fears of a wider regional war that could disrupt oil supplies from the Persian Gulf. India imports more than 85% of its crude oil requirements, so a sustained spike in energy prices would directly raise imported inflation, widen the country’s current account deficit, and force the Reserve Bank of India to hold interest rates higher for longer. Brent crude prices rose 1.2% to $92.3 per barrel during the session, adding to investor concerns. FIIs also remained net sellers on the day, offloading ₹1,260 crore worth of Indian equities, as global risk assets remained under broad pressure amid geopolitical jitters. “While domestic macro and corporate fundamentals remain very strong for Indian equities, the Mideast conflict is a major near-term overhang that will limit upside for at least the next two to three weeks,” said Priya Mishra, head of equity research at a Mumbai-based leading brokerage firm. “Investors are now waiting for two key cues: the U.S. Federal Reserve’s monetary policy announcement next week, and quarterly earnings from heavyweight Reliance Industries due later this week, to gauge the future direction of the market.” Sectorally, the Nifty Pharma index rose 1.4% to lead all gains, followed by the Nifty IT index which was up 1.1% on hopes of softer interest rate cycles in key U.S. and European export markets. The Nifty Energy index was the only sectoral loser, ending 0.3% lower on the back of rising global crude prices.