Indian Stock Market Expected to Open Lower on Friday

The Sensex and Nifty 50 are expected to open lower on Friday, following a sell-off in global markets due to the prolonged US-Iran war and surging crude oil prices. The Indian stock market crashed on Thursday, weighed down by concerns over crude oil prices and foreign fund outflows.

Global Market Cues

• Asian markets traded lower on Friday, with Japan's Nikkei 225 declining 2% and South Korea's Kospi slumping 3%.
• Japanese government bonds (JGBs) yields rose amid higher crude oil prices and a weaker yen.
• The US stock market ended sharply lower overnight, with the Dow Jones Industrial Average declining 739.42 points, or 1.56%, to 46,677.85.
• The S&P 500 plunged 103.22 points, or 1.52%, to 6,672.58, while the Nasdaq Composite closed 404.15 points, or 1.78%, lower at 22,311.98.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

US-Iran War and Crude Oil Prices

• The leaders of Iran, Israel, and the United States have voiced defiance and vowed to fight on as the Middle East war approaches the two-week mark.
• Crude oil prices jumped near $100 per barrel, further exacerbating inflation fears.
• The US issued a 30-day license for countries to buy Russian oil and petroleum products currently stranded at sea.

Economic Data

• India's retail inflation rose to 3.21% in February, hit by the rise in prices of food and beverages, clothing, and housing and utility services.
• Adobe reported revenue of $6.40 billion in the first-quarter ending February 27, beating estimates of $6.28 billion.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Currency and Commodities

• The dollar held gains on Friday and was set for its second weekly gain since the beginning of the war in Iran.
• Gold prices rose amid a weaker dollar and declining US Treasury yields, with spot gold price gaining 0.7% to $5,112.34 per ounce.
• Crude oil prices eased after jumping over 9% in the previous session, with Brent crude oil price falling 0.73% to $99.73 a barrel.