Indian equity markets ended lower on Friday as escalating US-Iran tensions and fresh military clashes near the Strait of Hormuz dampened investor sentiment and triggered broad-based selling across sectors.

Key Highlights

• Sensex and Nifty declined sharply as renewed US-Iran tensions pushed crude oil prices near $100.
• Rising geopolitical uncertainty and Strait of Hormuz conflict triggered profit booking across Indian equity markets.

The Sensex closed at 77,328, declining 516 points or 0.7%, while the Nifty 50 settled at 24,176.15, down 151.50 points or 0.6%. Despite Friday’s weakness, benchmark indices still managed to post modest weekly gains, with the Sensex rising 0.5% and the Nifty advancing 0.7% during the week.

The total market capitalization of companies listed on the BSE dropped by nearly ₹1.5 trillion, settling at ₹473.5 trillion.

Brent Crude Nears $100 Amid Strait of Hormuz Conflict

Investor concerns intensified after reports emerged of fresh clashes between Iran and the United States near the strategically critical Strait of Hormuz, a major global oil transit route handling nearly one-fifth of the world’s oil supply.

The escalation pushed Brent crude oil prices close to the psychological $100 per barrel mark during intraday trade. Brent crude was last trading around $99.86 per barrel.

According to reports, the US allegedly targeted missile and drone launch sites in Iran, claiming they were linked to attacks on American naval vessels crossing the Strait. Iran, meanwhile, accused Washington of attacking civilian coastal regions and oil tankers with support from regional allies.

The renewed geopolitical conflict has raised fears of prolonged disruption in oil supplies and a possible blockade in the Strait of Hormuz, fueling concerns over inflation and global economic uncertainty.

Higher Oil Prices Weigh on Indian Markets

Analysts said rising crude oil prices pose a significant risk for the Indian economy, which heavily depends on imported energy. Elevated oil prices can increase inflationary pressure, weaken corporate margins, and slow economic growth.

Several brokerage firms have reportedly turned cautious on Indian equities, citing the impact of the ongoing West Asia conflict on energy markets and investor confidence.

Benchmark indices had rallied over the past two weeks amid optimism surrounding a possible ceasefire and stable March-quarter earnings. However, the latest military developments have weakened hopes of a near-term diplomatic resolution.

Market Sentiment Remains Fragile

Vinod Nair, Head of Research at Geojit Investments, said the market witnessed a classic “risk-off” trading session amid rising geopolitical uncertainty.

“Markets witnessed a risk-off session following fresh US-Iran military action near the Strait of Hormuz, which weakened ceasefire hopes and triggered profit booking. However, stability in crude oil prices around $100 per barrel and benign US 10-year yields continue to support broader sentiment and the rupee,” Nair said.

He added that despite near-term volatility, investors continue to track opportunities driven by favorable corporate earnings and attractive valuations in select mid-cap and small-cap stocks.

Banking Stocks Drag Markets Lower

Market breadth remained weak throughout the session, with 2,217 stocks declining compared to 2,020 advancing stocks on the BSE.

State Bank of India (SBI) emerged as the biggest laggard on the Sensex, falling 6.6%, while HDFC Bank also witnessed significant selling pressure and ranked among the worst-performing index heavyweights.

Also Read: Sensex and Nifty End Lower After Volatile Trading Session

Technical Levels to Watch for Nifty

According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, immediate support for the Nifty is placed between 24,000 and 23,950.

“Any sustained move below this range could extend the Nifty’s weakness towards 23,800, followed by 23,650 in the short term. On the upside, immediate resistance is placed in the 24,330–24,350 zone,” Shah said.

Market participants are expected to closely monitor further developments in the Iran-US conflict, crude oil price movements, and global risk sentiment in the coming sessions.