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Indian benchmark indices, Sensex and Nifty, are likely to open sharply lower on Friday, weighed down by a combination of global and domestic factors
Stock Market Today: Will the heightened tension between Israel-Iran trigger a fall in Indian stock market?
Sensex Today: Indian equity markets tumbled on Friday, tracking sharp declines in Asian peers, as geopolitical tensions flared up following Israel’s military strikes on Iran. A spike in crude oil prices added to investor concerns, dragging down benchmark indices and broader markets.
The BSE Sensex dropped 573.6 points, or 0.70%, to close at 81,118.60 after touching an intraday low of 80,354.59. The NSE Nifty50 slipped 169.6 points, or 0.68%, to settle at 24,718.6.
Broader markets also ended lower, with the Nifty Midcap100 down 0.24% and the Nifty Smallcap100 shedding 0.43%.
Sectorally, indices ended mixed. Nifty PSU Bank and Nifty FMCG led the losers, falling over 1% each. Other laggards included Nifty Metal, Financial Services, Auto, Energy, Pharma, Consumer Durables, and Oil & Gas.
Among the 30 Sensex constituents, 26 stocks ended in the red. Adani Ports, ITC, IndusInd Bank, State Bank of India, and HDFC Bank fell over 1% each. In contrast, Tech Mahindra, TCS, Sun Pharma, and Maruti Suzuki managed to post gains.
Brent crude prices surged amid the heightened conflict, with WTI Crude climbing 8.57% to \$73.87 per barrel.
Market volatility also spiked, with India VIX—the fear gauge—rising 7.6% to end at 15.08, reflecting growing investor nervousness over geopolitical instability.
Broader Markets and Sectoral Indices Under Pressure
The sell-off extended to the broader markets as well. The Nifty SmallCap index dropped 1.59 per cent, while the Nifty MidCap index declined 1.44 per cent.
Sectoral indices across the board were in negative territory. Nifty Oil & Gas, IT, PSU Bank, and Auto indices all fell by up to 2 per cent, reflecting widespread investor caution.
Retail Inflation Eases to 5-Year Low
In more positive domestic economic news, India’s retail inflation fell to 2.82 per cent in May, down from 3.16 per cent in April—its lowest level since February 2019, when it stood at 2.57 per cent.
The decline was driven by a favourable base effect, a steep fall in vegetable prices, and the sharpest drop in pulses prices in over six years. The data provides further room for the Reserve Bank of India’s Monetary Policy Committee (MPC) to maintain its current policy stance in the coming months.
Global cues
Asia-Pacific markets traded mixed on Friday as reports of an Israeli military strike on Iran weighed on investor sentiment, even as Wall Street closed higher on encouraging US economic data.
Israel launched a preemptive strike on Iran early Friday, Defense Minister Israel Katz said, following US President Trump’s warning of a possible Israeli attack on Iranian nuclear sites. Katz added that a missile and drone retaliation from Iran is expected soon. A state of emergency has been declared.
Given that, Nikkei dropped 1.16 per cent, and the Topix fell a little over 1 per cent. The Kospi declined 0.67 per cent, while ASX 200 slipped 0.17 per cent. US stock futures edged lower in early trade, but key indexes are set to end the week in positive territory.
May producer prices in the US rose just 0.1 per cent—below the 0.2 per cent forecast—boosting market confidence after a similarly soft consumer inflation report earlier this week. The data supported a drop in bond yields and lifted equities.
Overnight, Wall Street saw broad gains. The S&P 500 climbed 0.38 per cent. The Nasdaq Composite rose 0.24 per cent, while the Dow Jones gained 0.24 per cent.
Commodity Corner
Gold prices climbed to a one-week high on Thursday, supported by escalating Middle East tensions and softer US economic data, which strengthened expectations of a potential Federal Reserve rate cut. Spot gold rose 1.1 per cent to $3,387.99 an ounce, while US gold futures surged 2.0 per cent to $3,410.70.
Crude oil prices jumped more than 13% on Friday to hit the highest in more than two months after Israel said it struck Iran, raising concerns of over disruption in oil supplies due to the escalating tensions in the Middle East. Brent crude oil spiked 12.82% to $78.25 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 13.48% to $77.21.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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