Sensex, Nifty fall in early trade as renewed US-Iran tensions unsettle global markets

Indian equity markets opened lower on Friday, with benchmark indices slipping nearly 0.7 per cent in early trade as renewed tensions between the United States and Iran weighed on investor sentiment and triggered a rise in crude oil prices.

The BSE Sensex dropped more than 500 points during the morning session to touch an intraday low of 77,291.72, down 0.71 per cent. The NSE Nifty50 also declined by 168 points, or 0.69 per cent, to 24,158.15.

Banking, automobile and oil-linked shares were among the biggest drags on the market. Sectoral indices including Nifty Private Bank, Nifty PSU Bank, Nifty Auto and Nifty Oil & Gas recorded the sharpest losses.

Major laggards on the Nifty included HDFC Bank, Axis Bank, ICICI Bank, Mahindra & Mahindra, Tata Motors, Maruti Suzuki, Eicher Motors and Shriram Finance.

However, defensive sectors such as information technology, pharmaceuticals and healthcare bucked the broader trend, with Nifty IT, Nifty Pharma and Nifty Healthcare trading in positive territory.

Market analysts said ongoing uncertainty in West Asia continued to fuel volatility in energy markets and global equities.

One analyst described the situation as an “escalation-de-escalation cycle” that was keeping investors cautious, particularly amid fluctuating crude oil prices.

The analyst also pointed to diverging trends across global markets, noting that while some economies remained resilient, others were under pressure from geopolitical uncertainty. In India, broader market indices continued to outperform despite concerns over high valuations, with the Nifty Midcap index hovering near record highs.

Investor concerns intensified after Iran accused the United States of breaching a month-long ceasefire agreement. Washington, however, said its recent military action was retaliatory and followed attacks by Iranian forces on US naval vessels passing through the Strait on Thursday.

Iranian military officials claimed US strikes had targeted oil tankers and civilian areas near the strait and within mainland territory.

Meanwhile, US President Donald Trump said the ceasefire remained intact and indicated that Washington was awaiting Tehran’s response to a new peace proposal.

Oil prices rose sharply amid fears of further disruption in the region. Brent crude climbed 2.82 per cent to $102.89 per barrel, while US West Texas Intermediate crude advanced 4 per cent to $98.64 per barrel.

Asian markets also came under pressure, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI each declining by up to 1 per cent. Overnight, US markets ended lower, with the S&P 500 falling 0.38 per cent and the Nasdaq slipping 0.13 per cent.

With IANS inputs