Nifty Points to Lackluster Open for Sensex, Nifty, Amid Optimism Over Crude Price Decline and US-Iran Diplomatic Progress

Indian Benchmark Equity Indices Set for Subdued Opening on Friday

The Indian benchmark equity indices, Sensex and Nifty, are expected to start the day on a flat note on Friday, with the GIFT Nifty trading at 23,884, an increase of just 11 points or 0.05 percent. This muted start comes despite a strong global backdrop, where Asian equities advanced and Wall Street scaled fresh record highs overnight.

Global Markets Rally

Asian equities, excluding Japan, rose on Friday, while Japanese and South Korean equities gained around 2 percent each, driven by enthusiasm around artificial intelligence-linked stocks. The US stock markets also extended their rally, with the Dow Jones Industrial Average rising 24.69 points to 50,668.97, the S&P 500 gaining 0.58 percent to 7,563.63, and the Nasdaq Composite climbing 0.91 percent to 26,917.47.

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Technology Shares Remain in Focus

Technology shares remained in focus globally after Dell Technologies raised its revenue and profit outlook on robust demand for AI-optimised servers, sending its shares soaring as much as 39 percent. Wipro's US-listed shares also surged more than 18 percent overnight following a partnership with ServiceNow to implement agentic AI workflows.

Crude Oil Prices Ease

Crude oil prices continued to ease, providing a major tailwind for oil-importing economies such as India. Brent crude futures slipped to around $93 per barrel and are down more than 10 percent for the week, marking their steepest weekly decline in nearly two months. Oil has fallen sharply on expectations that a prolonged ceasefire and eventual reopening of the Strait of Hormuz could restore energy flows from the Middle East.

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

Uncertainty Remains

However, uncertainty remains after reports indicated that US President Donald Trump has yet to formally approve the proposed agreement, while Vice President JD Vance cautioned that a final deal is not yet certain.

Market Impact

The sharp correction in crude prices is particularly significant for Indian markets as it could ease concerns over inflation, current account pressures and corporate margins. However, the rupee continues to trade in the 95.6-95.8 range against the US dollar, reflecting lingering caution among global investors.

Technical Analysis

According to Ponmudi R, CEO of Enrich Money, the decline in crude oil prices and progress towards a US-Iran truce are supportive for equities. However, persistent FII outflows and uncertainty over the final approval of the ceasefire agreement could cap gains in the near term. On the technical front, Ponmudi said the Nifty remains range-bound, with the 24,000-24,100 zone acting as a key resistance area and 23,800 serving as immediate support. A decisive move above 24,000 would be required to revive stronger bullish momentum. The Bank Nifty faces resistance in the 55,400-55,600 zone.

Previous Trading Session

The previous trading session on Wednesday saw Indian benchmarks end marginally lower after a volatile day. The Sensex fell 141.9 points to 75,867.80, while the Nifty slipped 6.55 points to 23,907.15.