Indian equities opened sharply lower on Friday as investors turned cautious amid renewed geopolitical uncertainty and elevated crude oil prices. The Sensex fell more than 300 points, while the Nifty50 slipped below 24,350, putting the benchmarks on track for a weaker week.
The Sensex was down 0.33% at 77,820.91, while the Nifty declined 0.26% to 24,332.40 by 9:37 am. The benchmarks were headed for a weekly loss of around 1%, which would end their two-week winning run.
The pressure came as oil prices remained elevated following renewed uncertainty over the situation involving the US and Iran. Brent crude was trading near $87 a barrel and had gained about 4% during the week as efforts to ease tensions in the Middle East remained stalled. For India, higher crude prices are closely watched because they can raise the import bill and put pressure on inflation, the rupee and corporate profitability.
The weakness was widespread. Fifteen of the 16 major sectoral indices were trading lower in early deals, with metal stocks emerging as the biggest drag. The Nifty Metal index fell about 1.3% as aluminium and copper producers declined following weakness in base-metal prices. Financial stocks also remained under pressure, with the Nifty Financial Services index down around 0.2%.
Among individual stocks, Tata Motors Passenger Vehicles was the biggest Nifty loser, falling around 5%. The stock came under pressure after the company reported an almost 80% year-on-year fall in quarterly profit and indicated that cost pressures could remain elevated in the July-September quarter. The company has also been dealing with challenges at Jaguar Land Rover, including supply disruptions, weaker Chinese demand and higher commodity costs.
Trent and Hindalco were also among the prominent early losers, each declining around 2%, according to market updates. The selling reflected the broader risk-off mood, particularly across stocks exposed to global commodity and demand trends.
There were, however, some bright spots. LG Electronics India jumped around 7% after reporting a strong first-quarter performance and maintaining its full-year revenue outlook. The company reported a 27% rise in profit and 15.5% growth in revenue, encouraging investors despite the uncertain market environment.
Other stocks remained active on the back of quarterly results. Jubilant FoodWorks gained around 6% after reporting a 6% year-on-year rise in consolidated net profit to ₹100 crore for the June quarter. Praj Industries also advanced after its quarterly profit more than doubled, while Welspun Living climbed after reporting an 83.6% increase in net profit. These moves showed that company-specific earnings were continuing to attract buyers despite the weak benchmark performance.
The broader market also weakened, with the Nifty Midcap and Smallcap indices falling around 0.3% and 0.2%, respectively. This suggested that the cautious mood was not limited to large-cap stocks.
Foreign investor activity remains another factor investors are monitoring. Overseas investors have continued to remain cautious towards Indian equities, with foreign selling recorded for three consecutive sessions through Thursday. At the same time, the absence of strong domestic macroeconomic triggers has kept the market in a consolidation phase.
Friday’s decline followed a subdued session on Thursday. The Nifty50 closed at 24,395.85, down 40.10 points, while the Sensex ended at 78,079.96, up marginally by 0.15%. Elevated crude prices and uncertainty in the Middle East had already limited gains despite supportive global cues.
Market participants will also track the rupee, US bond yields and global equity trends, which could influence foreign flows and risk appetite during the session. Any sharp movement in crude oil could have an immediate impact on inflation-sensitive sectors and the currency, while easing geopolitical tensions could provide some relief.
For investors, the current market is increasingly becoming a stock-picker’s market, with strong earnings helping companies such as LG Electronics India and Honasa Consumer outperform even as the benchmarks weaken. However, persistent oil-price pressure and foreign selling could keep the broader Indian stock market volatile in the near term.
Going ahead, crude oil prices, geopolitical developments, foreign fund flows and corporate earnings are likely to remain the key triggers for Dalal Street. For now, the Nifty’s inability to hold 24,350 and the Sensex’s sharp early decline point to a cautious trading environment. A cooling in Middle East tensions could help markets recover, but any further rise in oil prices may keep the pressure on Indian equities.