Stock Market Update: Gift Nifty, US-Iran Tensions Impact Oil, Gold, and Silver Prices

Indian Stock Market Sees Sharp Selling Amid US-Iran War and Crude Oil Price Volatility

The Indian stock market witnessed sharp selling for the second consecutive session on Thursday, with the Nifty 50 index ending 227 points lower at 23,639, the BSE Sensex crashing 829 points and closing at 76,034, and the Bank Nifty index nosediving 634 points and closing at 55,100.

The Gift Nifty Live Chart signals a negative start for the Indian stock market today, with the index trading 150 points upside at 23,578 as of 7:30 AM. Analysts expect the market to open with a sharp gap-down and trade with a weak undertone, reflecting heightened global risk aversion and growing geopolitical uncertainty.

Crude Oil Price remains a key trigger for the weakness, with prices surging above $100 per barrel. This poses a significant macroeconomic challenge for India, which imports over 85% of its crude oil requirements. Rising oil prices increase input costs, raise inflation risks, and dampen investor confidence in equities.

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Gold and silver rates showed some resilience in the early morning session on Friday, with the COMEX gold rate oscillating around $5,120/oz and the COMEX silver rate oscillating around $85.250/oz.

The Indian National Rupee (INR) touched a fresh intra-day low on Thursday, closing the session 24 paise down at its lowest level of 92.25 against the US Dollar (USD). The rupee was weighed down by elevated crude oil prices, massive withdrawal of foreign capital, and a strengthening greenback.

FII-DII data shows that Foreign Institutional Investors (FIIs) remained net sellers in the cash segment, selling Indian shares worth ₹7,050 crore, while Domestic Institutional Investors (DIIs) remained net buyers, adding shares worth ₹7,450 crore to their portfolio.

India VIX remains elevated, hovering around 21, signalling heightened investor caution and expectations of wider market swings. A VIX at these levels typically reflects a risk-off environment, in which traders anticipate sharper intraday volatility following recent market corrections.

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