A perfect storm of global events battered India’s stock market on Friday, pushing the Sensex down 588 points (0.72%) to 79,427 by 1 PM. The Nifty mirrored the slide, dropping 154 points (0.62%) to 24,612, underscoring widespread caution among traders.
Banking and realty indices spearheaded the fall—Nifty Bank -1.31%, Nifty Realty -1.85%. Autos, services, and consumption sectors lagged too, while defense, energy, PSEs, oil & gas, commodities, and metals bucked the trend with gains.
At the heart of the turmoil lies the escalating Middle East conflict between the US, Israel, and Iran. Extended hostilities now imperil energy infrastructure, raising the specter of supply shortages and price spikes that could derail economic recoveries.
Crude prices obligingly rallied: WTI at $80.39/bbl, Brent at $84.84/bbl. Investors flocked to gold (up 0.81% to $5,120/oz) and silver (up 2.96% to $84.61/oz) on Comex, prioritizing preservation over growth in uncertain times.
US markets’ Thursday weakness—Dow -1.61%, Nasdaq -0.26%—seeped into Asian trading, amplifying local pressures. FII selling exacerbated the slide, with net sales of ₹3,752.52 crore in equities, as foreign funds rotate away from emerging markets.
Experts attribute this episode to intertwined risks: war premiums in commodities, sticky inflation fears, and portfolio rebalancing. Positive performers like defense highlight thematic opportunities, but overall sentiment remains fragile. Policymakers and central banks’ responses will be pivotal in stabilizing trajectories ahead.