Equity benchmarks Sensex and Nifty opened lower on Friday as ongoing volatility in the international markets due to Iran and US tensions pushed crude oil prices, weakening investors' confidence in the markets.
Both benchmark indices slipped in early trade, with the Sensex opening at 82,272, tanking over 300 points, while the Nifty also opened down 60 points in early trade on Friday.
Market experts have linked the weakening market performance with the ongoing geopolitical tensions between the United States and Iran.
According to World Bank President and market commentator Ajay Banga, the risk-off sentiment continues to dominate markets amid geopolitical tensions involving Iran and fragile investor confidence following weakness in the US markets.
He said that while the US economic cycle is cooling, it remains resilient, and the Eurozone is showing signs of stabilisation.
China, he said, continues to face stress in the property sector, though recent indicators suggest a managed stabilisation, with upcoming Lunar New Year holiday spending expected to offer clues about consumer strength.
Banga warned that escalation risks remain elevated, citing Iran’s Supreme Leader Ayatollah Ali Khamenei, who rejected US demands to halt uranium enrichment.
He added that US President Donald Trump has warned of dangerous consequences in case a deal with Iran is not finalised or formalised.
Rising crude oil prices also pressured market sentiment. Brent crude crossed the USD 70 per barrel mark and was trading at around USD 71.82 per barrel amid ongoing tensions.
Safe-haven assets reflected cautious sentiment. Gold prices remained firm at Rs 155,277 per 10 grams for 24-carat gold, while silver prices rose 1.14 per cent to Rs 244,113 per kilogram.
Asian markets showed mixed trends. Japan’s Nikkei 225 declined around 1 per cent, while Hong Kong’s Hang Seng index fell 0.63 per cent.
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