Sensex & Nifty Recover; Investors Watch Geopolitical Risks, Oil Prices Tight
Indian equity markets staged a technical rebound on Friday, recouping part of the steep losses seen earlier in the week as geopolitical concerns intensified between the United States and Iran. Despite heightened global risk, benchmark indices closed with modest gains, bolstered by bargain hunting and short covering.
The NSE’s Nifty 50 climbed approximately 116 points, ending the session around 25,570, while the BSE Sensex gained close to 316 points, settling near 82,800. The rebound helped both indices finish the week slightly higher, although overall market sentiment remained cautious in the face of continued external uncertainties.
Risk Appetite Weak Amid Global Uncertainty
Investors have been grappling with mounting fears of a broader conflict in the Middle East after renewed tensions between Washington and Tehran, which have pushed crude oil prices above the $71-per-barrel mark. Higher oil costs could stoke inflationary pressures in India, an economy heavily dependent on energy imports.
The Volatility Index (VIX), a gauge of market fear, climbed nearly 7% to 14.36, signaling persistent nervousness among traders. Analysts say this rise reflects hedging activity and mixed positioning ahead of key macroeconomic data and global event risks.
“Escalating geopolitical tensions have disrupted traditional market patterns,” said Shrikant Chouhan, head of equity research at Kotak Securities. “Technical rebound is helping markets claw back ground, but the risk-off sentiment hasn’t fully eased.”
Broader Trends and Sectoral Moves
While large-caps led the comeback, midcap and smallcap segments saw divergence, with some smaller stocks lagging due to liquidity concerns. Foreign institutional investors (FIIs) were net buyers, albeit with limited conviction, supporting the recovery after recent outflows.
In Asia, markets displayed mixed performance, with other key indices reacting to global developments in oil, currency, and interest rate expectations.
Market participants now await fresh cues from global leaders’ diplomatic engagements and oil price direction, factors that could dictate near-term equity trends.
