Indian stock markets witnessed a bloody end to the trading week on Friday. Both benchmark indices, Sensex and Nifty50, settled the session about 1.5 per cent down each.
The BSE Sensex closed trading at 74,776, bleeding nearly 1,100 points, while the Nifty ended the day a little under 23,550, taking a hit of more than 350 points. Investors remained cautious despite reports of progress towards a potential US-Iran peace agreement.
Markets traded within a narrow range for most of the session as traders assessed conflicting signals emerging from West Asia and awaited greater clarity on the proposed extension of the ceasefire between Washington and Tehran.
Markets Turn Cautious Amid Geopolitical Uncertainty
Investor sentiment remained subdued throughout the day as reports suggested that the US and Iran have agreed in principle to renew their truce for another 60 days while negotiations continue towards a broader peace settlement.
According to reports, the proposed extension is still awaiting approval from US President Donald Trump.
However, optimism was tempered by fresh military developments. Iran reportedly launched missiles at unspecified targets late on Thursday, while earlier reports indicated ballistic missile launches towards Kuwait and drone activity around the Strait of Hormuz.
The mixed signals kept traders on the sidelines and prevented any sustained directional move in equities.
Auto Stocks Lead Declines
Among the Nifty50 constituents, Eicher Motors, InterGlobe Aviation, and Oil & Natural Gas Corporation (ONGC) emerged among the biggest laggards, weighing on benchmark indices.
The weakness in select heavyweight counters contributed to the broader market’s inability to sustain gains despite supportive global cues.
What Investors Are Watching Next
Going forward, markets are likely to remain highly sensitive to developments in West Asia.
Investors will closely track formal approval of the proposed US-Iran truce extension, further developments around the Strait of Hormuz, crude oil price movements, foreign institutional investor activity, and global market trends.
Until greater clarity emerges on the geopolitical front, traders are expected to maintain a cautious stance, keeping volatility elevated in the near term.
