Domestic equity markets started the day on a low note on Friday, influenced by weak global signals and increased Brent crude rates amidst diminishing hopes for an Iran conflict resolution. The Nifty commenced at 23,173.55, marking a 0.57% decline of 132.90 points, while the Sensex dropped about 400 points to 74,883.79 in early trading. Broader markets, including midcap and smallcap indices, also experienced downward trends.
Most sectors displayed negative trends, with realty, metal, PSU banks, and auto stocks leading the losses by up to 1%. Financials and consumer durables faced selling pressure. However, IT and oil and gas stocks defied the trend, showing slight gains. Notably, heavyweight stocks like HDFC Bank and Bajaj Finance were among the top losers.
Market sentiment remained cautious due to ongoing geopolitical tensions. US President Donald Trump announced an extension of the pause on attacks on Iran’s energy infrastructure, but uncertainty loomed following Iran’s rejection of a US proposal. Global markets mirrored a risk-off sentiment, with US indices closing significantly lower, the S&P 500 down by 1.74%, and Nasdaq by 2.38%. Asian markets also followed suit, with Japan’s Nikkei declining over 1% and South Korea’s Kospi dropping around 3%.
While crude oil prices remained volatile, Brent crude fell by 2.29% to $105.53 per barrel, and WTI crude declined by 2.54% to $92.08. Analysts predict continued market volatility amidst global uncertainties, with Nifty finding immediate support in the 23,050–23,000 zone and resistance around 23,450–23,500. Foreign institutional investors (FIIs) continued as net sellers, while domestic institutional investors (DIIs) supported the market. Indian markets resumed trading on Friday after a holiday on Thursday for Ram Navami.
