MUMBAI — Indian equity benchmark indices surrendered their previous session's gains and opened lower on Friday morning, as a sharp spike in international crude oil prices coupled with lingering geopolitical tensions dampened risk appetite among market participants.
At the opening bell, the 30-share BSE Sensex tumbled 235.36 points, or 0.30%, to trade at 78,699.80. Meanwhile, the broader 50-share NSE Nifty slipped 24.30 points, or 0.10%, to quote at 24,608.25.
Financials Drag, Tech Stocks Offer Support
The early pullback was primarily led by key financial and retail heavyweights. Among the top losers in the Sensex basket were Bajaj Finance, Bajaj Finserv, Trent, ICICI Bank, Bharti Airtel, and Eternal, all facing profit-booking pressure.
Conversely, IT majors provided a crucial cushion to prevent a steeper selloff. Shares of Tata Consultancy Services (TCS), Tech Mahindra, HCL Technologies, and Infosys traded in the green, benefiting from stable demand expectations in the tech domain.
Crude Surge & Geopolitical Jitters
A major headwind triggering Friday's weak sentiment was the upward trajectory in global energy markets. Benchmark Brent crude surged 1.16% to trade near $83.45 per barrel.
"Overnight, Wall Street retreated from recent record highs as investors reduced exposure to risk assets amid renewed concerns over energy prices and geopolitical uncertainty," noted Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Radhakrishnan added that rising crude prices stemmed from growing doubts surrounding the pace and resolution of diplomatic discussions involving Iran and the strategic Strait of Hormuz. "This has revived anxieties that supply disruptions along one of the world's most critical energy transit corridors could persist longer than anticipated," he added.
FII Flows & Domestic Market Dynamics
Foreign portfolio investors stayed cautious, with Foreign Institutional Investors (FIIs) emerging as net sellers on Thursday after offloading equities worth ₹17.86 crore, according to preliminary exchange data.
Market participants are also adjusting to structural operational changes introduced earlier this week. Equity exchanges launched the Closing Auction Session (CAS) for stocks trading in the Futures and Options (F&O) segment on Monday. Designed to enhance transparency and price discovery, the mechanism has caused brief divergence across indices as institutional traders recalibrate their closing strategies.
Global Market Cues
Asian markets displayed a mixed trend in morning trade. South Korea’s KOSPI and Japan’s Nikkei 225 edged lower, tracking overnight losses on Wall Street. On the flip side, China's Shanghai Composite and Hong Kong's Hang Seng index traded with modest gains.
In the previous trading session on Thursday, domestic benchmarks had ended on a higher note. The BSE Sensex gained 373.76 points (0.48%) to settle at 78,954.76, while the NSE Nifty ended marginally up by 11.35 points (0.05%) at 24,636.00.
