Indian equity markets opened lower on Friday as rising geopolitical tensions between the United States and Iran, higher crude oil prices, and weak global cues weighed on investor sentiment.
Benchmark indices slipped in early trade, with the Nifty 50 opening at 25,406.55, down 47.80 points or 0.19 per cent. The BSE Sensex also declined, opening at 82,272.49, lower by 225.65 points or 0.27 per cent.
Market participants pointed to global uncertainty and escalating geopolitical risks as key factors behind the cautious start.
Ajay Bagga, Banking and Market Expert, said that risk-off sentiment continues to dominate markets amid geopolitical tensions involving Iran and fragile investor confidence following weakness in US markets. He noted that while the US economic cycle is cooling but remains resilient, the Eurozone is showing signs of stabilization. China, he added, continues to face stress in the property sector, though recent indicators suggest managed stabilization, with upcoming Lunar New Year holiday spending expected to offer clues about consumer strength.
Bagga further warned of elevated escalation risks, citing Iran’s Supreme Leader Ayatollah Ali Khamenei rejecting US demands to halt uranium enrichment. He added that US President Donald Trump has warned of “traumatic consequences” if a deal is not reached within a month, while increased US military presence in the region has heightened fears of potential escalation.
Rising crude oil prices also pressured market sentiment. Brent crude crossed the USD 70 per barrel mark and was trading at around USD 71.82 per barrel amid ongoing tensions.
Safe-haven assets reflected cautious sentiment. Gold prices remained firm at Rs 1,55,277 per 10 grams for 24-carat gold, while silver prices rose 1.14 per cent to Rs 2,44,113 per kilogram.
Broader market indices on the NSE also declined, with the Nifty 100 down 0.18 per cent, the Nifty Smallcap 100 slipping 0.15 per cent, and the Nifty Midcap index falling 0.24 per cent.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp rise in Brent crude to around USD 72 reflects growing fear and uncertainty in global markets. He added that continued weakness in IT stocks has further weighed on sentiment. However, Vijayakumar pointed to the strength of the Indian economy and recovery in corporate earnings, as seen in Q3 results, as supportive factors. He said markets could rebound if the US-Iran standoff eases, advising investors to closely track developments in West Asia.
Asian markets showed mixed trends. Japan’s Nikkei 225 declined around 1 per cent, while Hong Kong’s Hang Seng index fell 0.63 per cent. Taiwan’s markets remained closed. Singapore’s Straits Times index edged up 0.15 per cent, while South Korea’s market rallied over 1 per cent.
US markets also ended lower on Thursday, adding to global caution. The S&P 500 declined 0.28 per cent, while the Nasdaq slipped 0.36 per cent.
Overall, elevated geopolitical risks, rising crude prices, and weak global cues continue to keep investor sentiment cautious in the near term. (ANI)
