Indian equity markets began Friday’s session on a cautious footing amid escalating geopolitical tensions between the United States and Iran, which have injected fresh volatility into global markets. Investors remained on edge as uncertainty over potential developments kept risk appetite subdued.
At around 9:16 am, the S&P BSE Sensex was marginally lower by 10.44 points at 82,487.70, while the Nifty 50 managed to stay above the crucial 25,450 mark. The broader markets showed a mixed trend, indicating stock- and sector-specific action throughout the session.
The IT sector continued to witness selling pressure, extending its week-long weakness and acting as a key drag on overall market sentiment. Analysts highlighted that the spike in Brent crude prices to around $72 reflects heightened geopolitical risk premiums being factored into markets.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that markets remain “on tender hooks” following strong rhetoric from Washington regarding Iran. He stated that near-term market direction will largely depend on whether diplomatic negotiations prevail or tensions escalate further.
Despite the current volatility, Vijayakumar emphasized that India’s macroeconomic fundamentals remain strong. Improved corporate earnings in the third quarter and resilience in domestic growth provide a supportive backdrop. He suggested that investors with a positive outlook on a potential diplomatic resolution may consider accumulating fairly valued, high-quality stocks in sectors such as banking, financials, automobiles, pharmaceuticals, hotels, capital goods, and telecom.
From a technical perspective, market strategists observed that Nifty’s recent bearish engulfing pattern has temporarily ended the short-term uptrend. However, the sharp fall may allow a recovery towards 25,580, while consolidation within the 25,450–25,180 range remains a likely scenario for the day.
Going forward, global cues, crude oil prices, rupee movement, and updates on the US–Iran standoff will be key determinants of market direction. Investors are expected to remain cautious until greater clarity emerges on the geopolitical front.
