The Indian equity markets opened positively on Friday, buoyed by domestic resilience against a backdrop of escalating Middle East tensions. The Sensex surged 237.77 points, rising to 81,599.63, while the Nifty 50 gained 77.55 points to kick off at 24,870.80. This upbeat start suggests that investors are favoring domestic strengths over external headwinds. Despite recent instability in global markets, India’s benchmark indices held their ground, signaling confidence rooted in local fundamentals and sectoral momentum.
Among the top 50 Nifty-listed companies, 32 stocks showed gains, while 18 posted losses, reinforcing a generally optimistic tone. The broader Nifty 100 index also climbed, led by robust large-cap activity, while the Nifty Midcap 100 recorded flat movement—a sign that investors prefer safety over mid-tier risk ahead of the weekend. In sector performance, Auto, Financial Services, and PSU Banks headed the charge, delivering strong early momentum, while Media, Metal, Pharma, and IT lagged, impacted by export sensitivities and global linkages.
Brent crude oil fell 2% to $77.22 per barrel, despite a 12% weekly surge. Its dip hinted at easing inflation pressures, but the weekly gain kept markets cautious. Gold edged down 0.2% to $1,363/oz, though it still showed a weekly loss. Meanwhile, the U.S. dollar strengthened, heading for its biggest weekly rise in over a month—proof of investors flocking to safe-haven assets amid geopolitical unease. These trends continue to influence volatility in emerging market currencies, including the rupee.
“Geopolitical risks normally have a short‑term impact on the markets…Worst‑case scenarios will not play out, but are getting factored in,” said Ajay Bagga of banking and market expertise, referring to the Israel–Iran tensions. He added, “The Israel‑Iran conflict enters its 8th day…Markets are factoring in worst‑case scenarios as Trump follows a policy of deliberate uncertainty creation around the decision to bring the US directly into the conflict.” Siddhartha Khemka of Motilal Oswal warned, “We expect the market to remain in consolidation mode…while there could be heightened volatility in case of further escalation.” Ajit Mishra of Religare Broking cautioned that “Further deterioration is likely if crude sustains above $80.” These thoughts highlight the mix of optimism and caution driving market decisions.
The Nifty shows a cautious pattern—trading below its 200-DMA and first dipping below its 21-EMA, signaling a pause in bullish momentum. Nandish Shah of HDFC Securities pointed out that 24,700 remains a key support level, with further losses likely to drag the index toward 24,500–24,400. On resistance, the 25,000 mark remains significant. Technical analyst Rupak De of LKP Securities described the narrow daily range as an indication of investor indecision—suggesting that a breakout above 24,850 is needed to regain bullish energy.
Bank Nifty opened with a bear candle and a small upper shadow, showing signs of consolidation in its hourly chart. Om Mehra of SAMCO Securities noted the index “remains within a contracting channel” with bulls unable to reclaim higher levels. Meanwhile, Bajaj Broking emphasized the psychological resistance at 56,000—suggesting that a sustained close above that level could open the path toward 56,600–57,000. These levels are now under investor watch as banking stocks face pressure from global uncertainty.
Ajay Bagga, banking and market expert said, “Geopolitical risks normally have a short-term impact on the markets. However, the lack of clarity on the end game and on the US involvement is leading to bearish overtones for the markets. Iran is no pushover, and the Islamic regime puts its survival ahead of the welfare of its population or economy. The worst-case scenarios will not play out, but are getting factored in.”
Overall, Friday’s market opening green signals are welcome in the face of geopolitical turbulence. With Friday’s sentiment holding steady, Foreign Portfolio Investors (FPIs) bought ₹934.62 crore in Indian equities, while Domestic Institutional Investors (DIIs) added ₹605.97 crore. Yet, the presence of sideways movement and cautious positioning suggests that markets could remain volatile heading into next week—especially if oil holds above $80 or geopolitical tensions flare.
(With Inputs From ANI)
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