Indian equity markets opened in the red on Friday amid escalating tensions in West Asia, despite ongoing peace talks.
The BSE Sensex fell 750 points to 74,542, while the NSE Nifty dropped 221 points to 23,085 in early trade. Asian markets, including Japan’s Nikkei and South Korea’s Kospi, also posted sharp losses.
The decline was exacerbated by Goldman Sachs lowering its rating on Indian equities and cutting its Nifty target.
Although US President Donald Trump hinted at a possible ceasefire in the Iran war, market volatility persists due to weak investor sentiment.
Market observers believe the recent rebound in equities was largely sentiment-driven rather than supported by strong global trade cues.
Rising commodity prices, higher fuel and energy costs, and increased foreign institutional investor (FII) outflows, combined with rupee movements, are expected to guide market direction in the near term.
Meanwhile, Asian markets, including those in Japan, South Korea and Taiwan, also declined due to FII outflows triggered by uncertainty in West Asia — a critical global shipping route that handles nearly 20 per cent of world trade.
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