The Indian stock markets began Friday morning with a heavy sentiment as investors remained wary after Israel launched an attack on Iran, raising tensions further in the region.
In the first hour of trading itself, both benchmark indices, Sensex and Nifty, tanked more than 1 per cent. As of 9:20 AM, the BSE Sensex plunged close to 900 points and traded under 80,800, while the NSE Nifty50 took a hit of nearly 300 points and dropped below 24,600 in the session.
On the 30-share Sensex, it was a complete bloodbath. The biggest laggards in the morning so far included Kotak Mahindra Bank, Adani Ports, PowerGrid, Tata Motors, and Titan. Both Kotak Bank and Adani Ports plunged more than 2 per cent in the session already.
In the broader markets, the indices painted red throughout. The Nifty Next50 dominated the losses and crashed 1.68 per cent in the morning hour. Sectorally, the PSU Bank and Oil & Gas indices plummeted 1.68 per cent and 1.58 per cent respectively.
Black Friday: Global Markets Fall
Financial markets across the world faced sharp declines on Friday following a sudden escalation in the Middle East, as Israel launched a military strike on Iran. The development has sparked renewed fears of a wider regional conflict, sending shockwaves through equities, commodities, and currency markets.
In a swift response, the United States distanced itself from the strike, calling it a unilateral move by Israel. Washington also warned Tehran against targeting American bases or other assets in the region, further underlining the seriousness of the situation. The statement has done little to ease investor anxiety, as geopolitical tensions threaten to destabilise an already fragile global market outlook.
US futures and major Asian indices registered steep losses in early trade as investors rushed to reposition portfolios amid the escalating crisis. Risk sentiment deteriorated rapidly, pushing traders towards traditional safe havens such as gold and the Japanese yen, while cryptocurrencies took a hit.
Markets Remain Volatile, Oil Prices Rise
Ajay Bagga, Banking and Market Expert, “The situation remains volatile with Israel declaring a national emergency in anticipation of Iranian retaliation. Middle East playbooks are being updated this morning as Oil supplies could be hit if Iran chooses to block Persian Gulf oil supply routes in retaliation. This morning, we are seeing the classical risk off, with Friday, the 13th, adding to market jitters. Stocks are down, Bond yields are down, Oil is up, safe havens like Gold and Japanese Yen are up, and not surprisingly, cryptos are down,” reported ANI.
Bagga’s comments echo the prevailing sentiment across global trading floors, where uncertainty over Iran’s potential response has raised the spectre of supply disruptions in key oil-producing regions. The declaration of a national emergency in Israel has only heightened these fears.
Oil prices spiked amid speculation that Tehran could retaliate by targeting crucial supply routes in the Persian Gulf, which would severely impact global crude flows. Such a move could trigger further inflationary pressures across economies already struggling with high energy costs.
Aviation Stocks Under Pressure
The broader sell-off extended to the aviation sector, which was already on edge. In the United States, Boeing shares fell 4.79 per cent on the NYSE on Thursday after an Air India-operated Boeing 787-8 Dreamliner was involved in a crash in Ahmedabad. Though not directly linked to the geopolitical crisis, the incident added to negative sentiment.
Indian aviation stocks were quick to react, with shares of IndiGo slipping close to 4 per cent and SpiceJet dropping more than 2 per cent around 10 AM on Friday. The dual blow of rising oil prices and heightened geopolitical risk has rattled airline investors, who fear a prolonged period of turbulence if tensions escalate further.
Market analysts have noted that such sharp sell-offs, while dramatic, often see swift reversals if the geopolitical flashpoint cools. However, they caution that the current situation remains highly fluid, and any further escalation could keep financial markets on edge in the days to come.
As the weekend approaches, traders are bracing for further volatility, with developments in the Middle East likely to remain the primary driver of sentiment.
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