Indian equity markets opened under pressure amid geopolitical tensions between the US and Iran and a spike in crude oil prices dented investor sentiment. Sensex and Nifty slipped in early trade, tracking weak global cues and cautious mood across Asian markets
The Nifty 50 index opened at 25,406.55, down 47.80 points, while the BSE Sensex also opened lower at 82,272.49. Representational image
After a highly volatile session in the past few days, Indian equity markets on Friday opened under pressure. The benchmark indices Nifty 50 and BSE Sensex on the last day of the week declined amid rising geopolitical tensions between the US and Iran, higher crude oil prices, and cautious investor sentiment.
The Nifty 50 index opened at 25,406.55, down -47.80 points or (-0.19 per cent), while the BSE Sensex also opened lower at 82,272.49, down -225.65 points or -0.27 per cent.
Market experts attribute weakness to global uncertainty and rising geopolitical risks
Ajay Bagga, banking and market expert, told news agency ANI, "Risk-off sentiment dominates due to geopolitical tensions (Iran). Fragile investor confidence after US market weakness. Macro backdrop: the US cycle is cooling but resilient. The Eurozone is stabilising. China is still facing property stress but showing managed stabilisation, as Lunar New Year holiday spending will give a clue next week on the strength of the Chinese consumer."
"Iran's escalation risk is high; Supreme Leader Khamenei rejected US demands to halt uranium enrichment. Trump has warned Tehran of 'traumatic consequences' if no deal is reached within a month. US military buildup in the region raises the risk of weekend escalation. Arab allies are not keen on risking Iranian retaliation," Bagga added.
Crude oil prices experience hike
Furthermore, rising crude oil prices also weighed on investor sentiment. Brent crude prices crossed the USD 70 mark and are currently trading at USD 71.82 per barrel amid tensions between the US and Iran.
Also, the precious metals remained firm, reflecting cautious sentiment. Gold prices held strong at Rs 155277 per 10 grams for 24 karat, while silver prices rose by 1.14 per cent to Rs 244113 per kg.
Broad market indices also witnessed declines on NSE. Nifty 100 was down by 0.18 per cent, Nifty Smallcap 100 declined by 0.15 per cent, and Nifty Midcap index fell by 0.24 per cent.
Experts on crude oil prices
VK Vijayakumar, chief investment strategist, Geojit Investments, told ANI, "The sharp spike in Brent crude to USD 72 reflects growing fear and uncertainty in markets. The continuing weakness in IT stocks is another dampener for the market."
“Amidst the many crises, the strength of the Indian economy and the recovery in corporate earnings, as reflected in Q3 numbers, are positives for the market. If, hopefully, the US-Iran standoff gets resolved in the coming days, the market will bounce back. Therefore, investors may wait and watch the unfolding developments in West Asia,” he added.
Other Asian markets also reflected mixed trends. Japan's Nikkei 225 index declined by 1 per cent to the 56845 level, while Hong Kong's Hang Seng index fell by 0.63 per cent to 26536. Taiwan's markets remained closed. Singapore's Straits Times Index rose marginally by 0.15 per cent to 5007, while South Korea's market witnessed a strong rally with a jump of more than 1 per cent to 5762.
Global markets
The US markets also closed lower on Thursday, adding to global caution. S&P 500 declined by 0.28 per cent to 6861, while Nasdaq fell by 0.36 per cent to 22672.72.
Rising geopolitical tensions, elevated crude oil prices, and global market weakness continue to weigh on investor sentiment, keeping the outlook cautious in the near term.
(With inputs from ANI)
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
