Indian markets likely to open lower as oil prices and geopolitical risks weigh on sentiment
Gift Nifty pointed to a flat start for Indian indices on Friday, while Asian and U.S. markets showed mixed performance amid high oil prices and tech earnings pressure.
Indian equities are expected to begin Friday on a subdued note after Gift Nifty traded around 23,038, slightly below the previous close, suggesting a flat opening for the Sense & Nifty. Analysts cite elevated crude oil prices and heightened geopolitical tensions as key factors that could keep domestic markets under pressure.
"The domestic market is likely to remain under pressure, with a combination of escalating geopolitical risks, elevated crude oil prices and weak global cues weighing on investor sentiment. WTI crude has climbed to the $102–103 a barrel range amid concerns that the US could resume military strikes against Iran, raising the risk of a prolonged energy-price shock. For India, persistently elevated crude oil prices remain a key macroeconomic headwind, weighing on investor risk appetite and limiting the prospects for a sustained recovery in domestic equities," said Ponmudi R, CEO of Enrich Money.
On Thursday, the BSE Sensex rose 1.24% to close at 74,151.04, its highest level in more than a week, while the NSE Nifty gained 1.05% to end at 22,936.75, driven by buying in banking, FMCG and IT stocks and a dip in oil prices.
"Markets staged a strong rebound on Thursday, gaining over 1% amid favourable cues and improved investor sentiment. After opening on a flat note, the Nifty crossed the key hurdle around 20-day EMA and gradually moved higher to settle at 22,936.75. The Sensex advanced over 900 points to close at 74,151 on the expiry day, reflecting improved risk appetite and renewed buying interest," said Ajit Mishra, senior vice-president of research at Religare Broking.
Technical outlooks suggest the Sensex could trade between 73,200 and 74,700, with support near 73,200-73,500 and resistance around 74,400-74,700. The Nifty is seen holding above its 20-day moving average and the 22,800 support zone, with the next hurdle at 23,000 and a target near the recent swing high of 23,175.
In the United States, technology earnings pressured Wall Street, sending the Nasdaq down 1.4% and pulling Nasdaq futures lower by more than 500 points. The Dow Jones fell about 130 points and the S&P 500 slipped 0.3%, with S&P 500 futures down 50 points.
Asian markets were mixed. South Korea’s Kospi dropped 4% as AI-related concerns hit heavyweight stocks, while Japan’s Nikkei fell 1.47% following weak US tech results. Taiwan’s Taiex slid over 3% to 44,907.12.