Indian stock markets traded cautiously on Friday, with benchmark indices falling 0.7% each in the morning session. This decline was influenced by renewed hostilities between the United States and Iran, impacting investor sentiment globally. Sensex dropped by 0.71%, over 500 points, reaching an intraday low of 77,291.72, while Nifty slipped by 168 points, or 0.69%, to 24,158.15.
Among sectoral indices, Nifty Private Bank, Nifty PSU Bank, Nifty Auto, and Nifty Oil & Gas were the top losers. Notable laggards in the Nifty pack included HDFC Bank, Axis Bank, ICICI Bank, Mahindra & Mahindra, Tata Motors, Maruti Suzuki, Eicher Motors, Shriram Finance, and Eternal. However, Nifty IT, Nifty Chemicals, Nifty Pharma, and Nifty Healthcare showed gains, bucking the trend.
A market expert pointed out the impact of the “escalation-de-escalation drama” in West Asia on crude oil prices, leading to market volatility. The expert also highlighted the varying global market performances, with some markets excelling while others lag behind. In India, the broader market, particularly the Nifty Midcap index, has shown significant outperformance despite high valuations.
On the geopolitical front, Iran accused the US of breaching the ceasefire, while the US defended its retaliatory strikes triggered by Iranian forces firing on American naval vessels. Iran’s military reported US targeting of an Iranian oil tanker and civilian areas. President Donald Trump affirmed the ceasefire’s continuation, awaiting Tehran’s response to a peace proposal. Oil prices surged due to these tensions, with Brent crude rising 2.82% to $102.89 per barrel and US WTI advancing 4% to $98.64 per barrel.
Asian equities faced pressure, with the Nikkei, Hang Seng, and KOSPI trading up to 1% lower. Wall Street also experienced a downturn, with the S&P 500 closing 0.38% lower and the Nasdaq down 0.13%.
