MUMBAI, India — Indian equity markets ended higher on Friday, although benchmarks trimmed gains in the final hour of trading as rising tensions between Iran and Israel pushed oil prices higher and weighed on investor sentiment.
The benchmark Nifty and Sensex settled off their intraday highs after reports of fresh strikes between Iran and Israel raised concerns over global energy supplies.
The Nifty rose 112.35 points, or 0.49%, to close at 23,114.50, while the Sensex gained 325.72 points, or 0.44%, to end at 74,532.96.
From a technical standpoint, analysts said the Nifty continues to face resistance near the 23,350 level, reinforcing a sell-on-rise strategy.
“A breakdown below 23,000 level could extend the downside towards 22,900–22,950, while on the upside, 23,600 remains a strong supply zone likely to cap any meaningful recovery,” an analyst said.
Markets traded firmly higher for most of the session, but volatility increased in the final hour as crude oil prices rose on fears of supply disruptions.
Concerns over Middle East tensions impacting global oil availability remain a key risk, particularly for import-dependent economies such as India.
Broader markets also saw some profit-taking toward the close. The Nifty MidCap index ended 0.67% higher, while the Nifty SmallCap index rose 0.09%, after giving up a portion of earlier gains.
On the sectoral front, real estate stocks were among the worst performers, with the Nifty Realty index declining about 1%. The Nifty Financial Services and Nifty Media indices also underperformed the broader market.
In contrast, defensive and rate-sensitive sectors showed strength. The Nifty Pharma and Nifty PSU Bank indices were among the top gainers, while the Nifty IT index rose 2.17% during the session.
Market participants are expected to remain cautious in the near term, closely monitoring geopolitical developments and crude oil price movements, analysts said.
Global benchmark Brent crude rose in the latter half of the trading day as supply concerns intensified due to the ongoing Middle East conflict.
Meanwhile, the Indian rupee weakened 1.17% to close at a record low of 93.71 against the U.S. dollar.
“While geopolitical volatility remains a key driver for short-term sentiment, the USDINR technical setup remains bullish; having breached ascending channel resistance, the pair eyes a 93.75 level with support shifting to 92.90,” an analyst said. (Source: IANS)
