The decline follows a rebound in oil prices, which edged higher on Thursday after the previous session’s losses, as markets reassessed the chances of de-escalation in the Middle East. Iran said it is still reviewing a U.S. proposal aimed at ending the conflict that has disrupted global energy flows.
However, despite reviewing the proposal, Iran’s foreign minister made it clear on Wednesday that the country does not intend to enter talks to end the widening conflict. At the same time, U.S. President Donald Trump warned that Washington would step up pressure if Tehran fails to accept that it has been “defeated militarily,” according to White House press secretary Karoline Leavitt.
These developments are particularly significant for India, given the market’s sensitivity to crude oil prices. The country’s heavy dependence on imported crude oil, LNG and LPG makes it vulnerable to supply disruptions and price spikes, especially with the Strait of Hormuz serving as a critical chokepoint.
Global cues remained mixed. Asian markets struggled for direction on Thursday, while the dollar held firm as investors stayed cautious amid fast-moving developments in the Middle East. The ongoing conflict has unsettled global markets, lifted oil prices, revived inflation concerns and clouded interest rate expectations.
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In early Asian trade, Japan’s Nikkei rose 0.6%, while South Korean markets declined 1.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.23% and is headed for an 8.7% drop this month, its steepest fall since October 2022.
On the other hand, U.S. markets ended higher overnight. The Dow Jones Industrial Average rose 305.43 points, or 0.66%, to close at 46,429.49. The S&P 500 gained 0.54% to 6,591.90, while the Nasdaq Composite advanced 0.77% to settle at 21,929.83.Back home, equities had seen a strong rally in the previous session. The Sensex surged 1,205 points to close at 75,273, while the Nifty 50 climbed 394 points to 23,306. The sharp upmove added more than Rs 8 lakh crore to the total market capitalisation of BSE-listed companies, taking it to nearly Rs 431 lakh crore.
What are experts saying?
Hariprasad K, Founder of Livelong Wealth, said the 23,300–23,350 zone remains a key level in the near term. Sustaining above this range could offer some stability, while a breakdown may invite fresh selling pressure. On the upside, the 23,500–23,600 band continues to act as a strong supply zone, followed by resistance at 23,800. On the downside, 23,000 is seen as a crucial support level, backed by strong demand and open interest build-up, with 22,900 as the next support if weakness continues.
He added that while the recent rebound reflects improved sentiment due to softer crude prices and some geopolitical optimism, the absence of strong follow-through buying and persistent volatility suggest that the market remains fragile. A sustained uptrend will require support from stable macro conditions and consistent institutional flows. Until then, a sell-on-rise approach is likely to dominate the near-term trend.
Rupak De, Senior Technical Analyst at LKP Securities, said the short-term trend may stay positive as long as the index holds above 23,000, which is an important support level. On the upside, a decisive move above 23,500 could trigger the next leg of the rally, potentially extending towards 24,000–24,500. However, failure to reclaim 23,500 may bring back selling pressure in the market.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)