Stock Market Today: Sensex and Nifty Fall Over 1% as Oil Prices Surge Amid US–Iran Tensions

Indian equity markets ended sharply lower on Friday as escalating tensions between the United States and Iran unsettled investors. Benchmark indices BSE Sensex and Nifty 50 fell more than 1%, reflecting a cautious sentiment and heightened volatility across global markets. The Sensex dropped 912.91 points (1.20%) to 75,121.51, while the Nifty slipped to 23,321.10.

Markets opened on a weak note, with the Nifty starting 178 points lower at 23,462 and the Sensex falling nearly 500 points to 75,488. The decline was influenced by a surge in crude oil prices and the Indian rupee hitting a fresh low against the US dollar, adding pressure on domestic equities. Earlier in the day, GIFT Nifty, an early indicator of market trends, traded 154 points lower at 23,557.50, signaling a negative start for Dalal Street.

The sharp fall is largely attributed to geopolitical fears over a prolonged conflict in the Middle East. Investors are particularly concerned about potential disruptions to global oil supply, as Iran could continue blocking or disrupting shipping through the Strait of Hormuz, one of the world’s most critical energy transit routes. Analysts warn that any prolonged disruption could push oil prices higher and deepen the global risk-off sentiment. Despite these concerns, oil prices eased slightly on Friday morning after the US issued a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea, alleviating some fears of immediate supply shortages.

In addition to geopolitical tensions, heavy selling by Foreign Institutional Investors (FIIs) has kept markets under pressure. However, Domestic Institutional Investors (DIIs) continue to provide support, partially offsetting the impact of foreign selling. Sector-wise, auto, consumer, and financial stocks led the sell-off in Thursday’s session, while select commodity stocks saw limited buying interest. Analysts expect markets to remain cautious in the near term, with global developments, crude oil movements, currency fluctuations, and foreign fund flows continuing to influence market direction. Any easing of tensions in the Middle East or stabilization in oil prices could help restore investor confidence in the coming sessions.