GIFT Nifty gained over 219 points, or more than 0.9%, to 24,366, as seen at 8.50 am on Friday. Notably, Indian stock market is closed today on account of Maharashtra Day.
After hitting as high as $126 per barrel yesterday, oil prices cooled down but continued to remain elevated above $110 per barrel today. The war between Iran and US has now entered its third month, with the Strait of Hormuz continuing to remain choked and keeping investors on edge.
Iran-US war
Despite expectations of some relief on Dalal Street next week, caution is warranted. US President Donald Trump said that the military blockade of Iranian ports could last for months. He may be planning a series of fresh military strikes to compel Iran to negotiate an end to the conflict, a US official told Reuters.
Iran meanwhile said that it would respond with “long and painful strikes” on US positions if Washington renewed its strikes. Iranian Foreign Ministry spokesman Esmaeil Baghaei said on Thursday that it was not reasonable to expect quick results from US talks, according to the official IRNA news agency. “Expecting to reach a result in a short time, regardless of who the mediator is, in my opinion, is not very realistic,” he was quoted as saying.
Market this week
Indian stock market tumbled on Thursday, with Sensex and Nifty cracking over 0.7% each, as oil prices soared to historic levels, the rupee plunged to an all-time low, along with other factors that dampened investor sentiment. Markets have erased all gains recorded earlier in the week. Overall this week, Sensex declined more than 249 points and Nifty fell below 24,000.Foreign investors remained net sellers of Indian equities for the eighth consecutive session yesterday, net selling Indian shares worth nearly Rs 8,048 crore on Thursday, according to provisional data on NSE. While this does not reflect what their trading activity will be next week, sustained FII selling dampens investor sentiment and fuels the selloff in the market.
What lies ahead?
Vinod Nair, Head of Research at Geojit Investments, said that global sentiment deteriorated sharply as US–Iran tensions escalated and major maritime shipping routes faced continued disruption. “In India, rising oil prices weighed on the INR and revived worries about capital outflows and widening deficits, given the economy’s heavy reliance on crude imports. The Fed kept rates unchanged but maintained a firm policy stance, supporting the dollar and tightening conditions for emerging markets,” he said.
“Domestically, autos, banks, metals, and real estate led the decline, while IT and pharma saw selective defensive buying. A mild recovery toward the end of the session offered limited respite, and overall sentiment remained cautious ahead of the extended holiday weekend,” he added.
Key events to track on May 1 are US and Japan’s April 2026 Manufacturing PMI, said Sunny Agrawal, Head of Fundamental Research at SBI Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)