The Indian stock markets faced significant losses on Friday due to the ongoing US–Israel and Iran conflict, now in its seventh day. The Sensex dropped by 1,097 points, or 1.37%, closing at 78,918, while the Nifty fell by 315 points, or 1.27%, to end at 24,450. The Nifty bank also saw a substantial decline of 2.15%, settling at 57,783.
In line with the main indices, the broader markets also saw losses, with the Nifty Midcap 100 index decreasing by 0.63% and the NSE Smallcap 100 by 0.11%. Additionally, the Nifty Next 50 index dipped by 0.34%. Despite this, microcap companies displayed some resilience, with the Nifty Microcap 250 index only slightly down by 0.08%.
Most sectoral indices experienced losses, except for FMCG and IT, which saw marginal gains. Notably, Nifty private bank, PSU bank, and realty sectors were the top losers, declining by 2.19%, 2.11%, and 1.91%, respectively. On the other hand, shares of defense companies and a few public sector undertakings surged by up to 9% on the National Stock Exchange (NSE).
Market data revealed that out of the 4,357 stocks on the BSE, 1,833 advanced, 2,355 declined, and 169 remained unchanged. Moreover, 180 stocks hit the upper circuit, while 162 hit the lower circuit. The Indian rupee closed lower by 0.09% against the dollar at 91.84 per dollar on Friday.
Following Iran’s missile and drone attacks in the Gulf, oil prices surged, with Brent crude surpassing $86 and US crude closing above $81 per barrel after an 8.5% surge. Analysts highlighted that the Nifty index’s key support level remains at 24,500, while the Nifty Bank faces key resistance levels at 59,000 and 58,500. Market volatility also rose significantly, with India VIX increasing over 11% from the previous close, indicating a shift towards risk-averse positioning among investors.
