Indian equity markets are likely to witness a weak opening on Wednesday, with GIFT Nifty indicating a gap-down start following a sharp deterioration in global risk sentiment. Around 8:10 am, GIFT Nifty was trading at 24,225, down 158.5 points or 0.65 percent, suggesting a negative opening for the Nifty 50 after it closed at 24,398.70 in the previous session.

The cautious outlook follows renewed geopolitical tensions in the Middle East after the United States conducted airstrikes against Iran in response to attacks on commercial vessels transiting the Strait of Hormuz. The escalation has heightened concerns over regional stability and the security of global energy supplies, prompting investors to reduce exposure to risk assets.

The geopolitical developments led to a sharp rise in crude oil prices. Brent crude futures gained nearly 2 percent to around $75.5 per barrel, while US West Texas Intermediate crude advanced close to $71.8 per barrel, extending recent gains amid tightening concerns surrounding Iranian crude exports and global oil supply.

Domestic benchmark indices ended lower in the previous trading session, breaking a four-session winning streak. The Sensex declined 104.35 points, or 0.13 percent, to settle at 78,180.72, while the Nifty 50 fell 31.65 points, or 0.13 percent, to close at 24,398.70.

Global markets also remained under pressure. Wall Street ended lower overnight as semiconductor stocks witnessed fresh selling amid concerns over the sustainability of the artificial intelligence-driven rally. The Nasdaq Composite declined 1.16 percent, the S&P 500 fell 0.45 percent, and the Dow Jones Industrial Average slipped 0.25 percent despite touching an intraday record high.

Asian markets traded mixed during early Wednesday trade. Japan and Australia declined amid risk-off sentiment, while Hong Kong and mainland Chinese equities recorded modest gains. US index futures remained largely stable after the previous session's decline.

On the institutional front, foreign institutional investors remained net buyers for the third consecutive session, purchasing Indian equities worth Rs 393 crore. In contrast, domestic institutional investors turned net sellers, offloading equities worth Rs 383 crore, reflecting cautious domestic participation ahead of evolving global developments.

According to Ponmudi R, CEO of Enrich Money, the renewed geopolitical escalation has revived concerns over global energy supplies and could trigger profit booking following the recent market rally. He noted that the continuation of foreign institutional inflows will be crucial in determining the domestic market's ability to absorb global volatility.

From a technical perspective, the Nifty continues to maintain a constructive trend despite recent weakness. Immediate resistance is placed around the 24,500 level, with a sustained move above it potentially opening the path towards 24,800. On the downside, immediate support is seen at 24,300, followed by the crucial 24,200 level. A breach below this zone could increase selling pressure and expose the index to the 24,000 mark.