Nifty Faces Muted Start on Friday Amid Escalating West Asia Tensions

Global Market Update: West Asia Tensions Weigh on Investor Sentiment

Key Highlights

• Gift Nifty opened down 0.3% on Friday, indicating a subdued start for domestic equities.
• Oil prices rose to around USD 105 per barrel after Iran denied any talks with the US, deepening uncertainty over a quick ceasefire in the nearly month-long conflict.

Market Impact

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• The widening conflict has unsettled global markets this month, pushing up crude prices, reviving inflation concerns, and impacting expectations around global interest rates.
• Investors' wealth surged by Rs 15.80 lakh crore in the past two sessions following a rebound in the stock market.

Market Performance

• Sensex jumped 1,205 points or 1.63% to settle at 75,273.45.
• Sensex rallied 1,781.31 points or 2.4% to 75,849.76 during the day.
• Nifty gained 394.05 points or 1.72% to end at 23,306.45.

Market Outlook

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

• Reports of thousands of US troops being deployed to the region may halt the two-day rebound in domestic markets.
• US President Donald Trump reiterated that Iran was seeking a deal to end the conflict, while Iranian Foreign Minister Abbas Araghchi said Tehran was reviewing a US proposal but had no plans for talks.
• Wall Street futures indicated a lower opening, while Asian markets declined overnight.