Indian equity markets are set for a firmer session on Friday, with benchmark indices trading higher in the pre-open session after a sharp sell-off in the previous session.
The BSE Sensex opened the day above 74,800, rallying more than 600 points, while the NSE Nifty50 started trading around 23,200, climbing a little over 200 points, as of 9:15 AM.
At around 9:06 AM, the Sensex was at 74,617.14, up 409.90 points or 0.55 per cent, while the Nifty stood at 23,128.35, higher by 126.20 points or 0.55 per cent, indicating a positive start despite recent volatility.
The early gains come after markets witnessed a steep correction on Thursday amid a surge in crude oil prices and worsening geopolitical tensions in West Asia.
Markets Plunge To Near One-Year Lows
On Thursday, benchmark indices registered their sharpest decline in months, snapping a three-day winning streak. The Sensex plunged nearly 2,500 points or 3.26 per cent, its biggest single-day fall since June 2024, to settle at 74,207.24, a level last seen in early April 2025.
During the session, the index had dropped as much as 2,753.18 points, or 3.58 per cent, to touch an intra-day low of 73,950.95.
The Nifty also tumbled close to 800 points, or 3.26 per cent, to close at 23,002.15, erasing gains from the previous three sessions, during which the Sensex had risen 2.8 per cent and the Nifty had gained 2.68 per cent.
Oil Shock Triggers Broad-Based Sell-Off
The sharp decline was largely driven by a spike in global crude oil prices following intensified attacks on energy infrastructure in West Asia.
Brent crude surged 6.75 per cent to $114.8 per barrel after Iran targeted key energy facilities in Qatar and Kuwait, raising concerns over supply disruptions. The escalation also included strikes on a Saudi refinery and liquefied natural gas infrastructure in the region.
Analysts said the sudden jump in oil prices significantly altered risk perception, especially for energy-importing economies like India, triggering a broad-based sell-off across sectors.
The sharp market correction led to a significant erosion in investor wealth. The market capitalisation of BSE-listed companies dropped by Rs 12,87,273.89 crore in a single session to Rs 4,26,13,557.95 crore ($4.61 trillion).
Since the escalation of the West Asia conflict on February 28, investors have lost over Rs 37 lakh crore in market value.
Despite the rebound in the pre-open session, market participants remain cautious. Analysts expect volatility to persist, with crude oil prices, geopolitical developments and foreign fund flows continuing to drive near-term market direction.
