Indian Equities Face Muted Open as US-Iran Tensions Drive Oil Above $93
Indian benchmark indices are poised for a flat start as surging crude prices and looming US sanctions on Iran renew inflation fears and global risk aversion.
Indian stock markets are set to open on a muted note Friday, with the Gift Nifty indicating a flat start for domestic equities. The index was trading around 24,234, holding a slight premium of 26 points over the previous close of Nifty futures.
This cautious tone follows Thursday’s session, where the Nifty 50 snapped a seven-day losing streak to reclaim the 24,200 level. The BSE Sensex also advanced 0.82 percent to close at 77,537.72, offering brief relief to domestic investors.
That optimism is now colliding with escalating geopolitical risks. Global benchmark Brent crude is trading above $93 a barrel, tracking a weekly gain of more than 5 percent, while West Texas Intermediate crude hovers in the $86 to $87 range.
The surge is driven by US efforts to economically isolate Iran. US Treasury Secretary Scott Bessent stated that Washington will unveil the “toughest sanctions in history” against Tehran early next week, a move President Donald Trump has framed as an “economic D-day.”
Iranian Foreign Minister Abbas Araghchi dismissed the threats as “economic terrorism” and a diversion from America’s own debt challenges. However, the proposed measures risk intensifying friction with China and disrupting energy shipments through the Strait of Hormuz.
For Indian equities, elevated energy costs remain a primary vulnerability. Ponmudi R, CEO of Enrich Money, noted that renewed global risk aversion and fears of oil-driven inflation are weighing heavily on market sentiment, overshadowing Thursday’s short-lived treasury-driven relief.
Technically, the Nifty 50 faces an immediate hurdle in the 24,300 to 24,400 zone, according to Ajit Mishra, Senior Vice President of Research at Religare Broking. A decisive break above this range could extend the recovery toward 24,600, though the 24,000 level remains critical support.
The Bank Nifty index is showing a cautiously constructive bias, with immediate resistance at 57,800 and strong support near 57,000. Meanwhile, gold continues to attract safe-haven flows, holding comfortably above the $4,500 level amid prolonged geopolitical uncertainty.
Despite these macro headwinds, market analysts have identified selective intraday opportunities. Firms including Choice Broking and Anand Rathi highlighted Sai Life Sciences, RBL Bank, JSW Steel, Computer Age Management Services, and ICICI Lombard General Insurance as potential buys for Friday’s session.
