West Asia markets slip as ten
Indian equities fell on Friday, with benchmark indices posting their longest weekly decline in more than seven months amid rising Iran-linked tensions, keeping crude prices high and unsettled investor sentiment.
The Sensex fell 1,690 points or 2.3 per cent to 73,583, while the Nifty 50 fell 487 points or 2.09 per cent to 22,820. During the week, both indices fell 1.3 per cent, their fifth consecutive weekly decline – the longest decline since August 2025.
The selling reduced investor wealth by ₹8.9 trillion, taking the market capitalization of BSE-listed companies down to ₹422.2 trillion. Brent crude rose 3.1 percent to $103.05 a barrel, extending its third consecutive session of gains as hostilities between Iran and Israel show no signs of abating.
Concerns about supply disruption have increased due to Iran’s continuous targeting of Gulf countries.
US President Donald Trump said on Thursday that the US would postpone plans to attack Iran’s energy infrastructure for the next 10 days, adding that talks were in progress. Earlier, he had urged Iran to reopen the Strait of Hormuz – a vital artery for global energy trade that handles about a fifth of global oil and LNG flows. The waterway is effectively blocked, causing supply concerns and sending crude oil prices soaring. Some estimates suggest that if the disruption continues through June, oil could rise to $200 a barrel.
The prolonged conflict has given rise to fears of slow economic growth, weak corporate earnings and rising inflation globally. Reflecting these concerns, the rupee slipped to a record low of 94.81 against the dollar.
China launched a series of investigations into US trade practices in response to similar actions by the Trump administration, adding to global uncertainty.
India remains particularly sensitive to rising crude oil prices due to its heavy dependence on energy imports. Goldman Sachs, in a recent note, cut its CY26 earnings growth forecast for India to 8 per cent from 16 per cent earlier, and warned of further decline in the coming quarters.
Among stocks, Reliance Industries fell 4.5 per cent – its steepest fall since June 2024 – and was the biggest drag on the Sensex, pulling it down 368 points. The decline followed the government’s decision to reimpose unexpected taxes on diesel and aviation turbine fuel exports. HDFC Bank also weighed on the index, falling 3.3 per cent and dragging it down to 328 points.
The market breadth remained weak, with a decline of 3,615 shares against a gain of 761 shares.
Foreign portfolio investors (FPIs) were net sellers of ₹4,367 crore, while domestic institutional investors (DIIs) provided partial support with net buying of ₹3,566 crore.
Despite near-term uncertainty, some market participants see opportunities emerging.
Pramod Gubbi, co-founder of Marcellus Investment Managers, said, “A lot of critical energy infrastructure has been damaged, and recovery may take several years. For long-term investors, it is important to stick to asset allocation and fundamentals. Valuation excesses are correcting, which could create opportunities.”
Technically, analysts see resistance levels ahead in the near term.
“For traders, 23,000 on Nifty and 74,500 on Sensex will act as immediate resistance. As long as the indices remain below these levels, sentiment is likely to remain weak,” said Amol Athawale, vice-president (technical research), Kotak Securities.
