Indian markets open lower amid cautious sentiment; global cues mixed on ceasefire news

NEW DELHI: Indian equity benchmarks opened in the red on Friday, reflecting cautious investor sentiment amid mixed global cues, though markets showed signs of picking up pace shortly after the opening session. The BSE Sensex opened at 77,947.66 points, down by 41.02 points, or 0.05 per cent, at 9.17 am. Similarly, the NSE Nifty 50 was recorded at 24,162.20 points, marking a decline of 34.55 points or 0.14 per cent.

As of early Friday morning, Brent crude was trading at $98.12, down by $1.27 (-1.28 per cent). Similarly, crude oil slipped to $93.41, a drop of $1.28 (-1.35 per cent), indicating a bearish trend for the session. In contrast, gold continued its bullish run, trading at $4,795.95, up by $7.43 (+0.16 per cent).

Global cues remained mixed as US stock futures were largely unchanged on Thursday night after US President Donald Trump confirmed that Israel and Lebanon have agreed to a 10-day ceasefire. S&P 500 futures edged up by about 0.1 per cent, while Nasdaq 100 futures traded near the flatline. Futures linked to the Dow Jones Industrial Average rose by 98 points, or 0.2 per cent.

During Thursday’s regular trading session, all three major US indices closed higher. The S&P 500 and Nasdaq Composite gained 0.26 per cent and 0.36 per cent respectively, both hitting fresh intraday and closing highs. The Dow Jones Industrial Average advanced by 115 points, or 0.24 per cent.

The S&P 500 has now erased losses incurred since the onset of the Iran conflict and moved higher following Trump’s announcement that leaders of Israel and Lebanon agreed to the ceasefire after discussions in Washington. The temporary truce is set to begin at 5 p.m. ET, with further negotiations likely to take place next weekend.

Back home, market analysts attribute the cautious start to a mix of international developments and technical resistance levels. Ponmudi R, CEO of Enrich Money, said that while there were early signs of improving global sentiment, renewed tensions in the Middle East have added uncertainty.

“Indian equity markets are expected to open on a cautious note, even as global sentiment shows tentative signs of improvement. While optimism around potential progress in U.S.-Iran talks had initially supported risk appetite, fresh developments around disruptions in the Strait of Hormuz have reintroduced uncertainty. Partial blockages and rising tensions along this critical oil route have kept global markets on edge, given that nearly 20 per cent of global oil supply passes through it,” he said.

He further noted that as a major oil importer, India remains vulnerable to sustained spikes in crude prices, which could impact trade balance and corporate margins. “Brent crude, currently trading in the $94-100 per barrel range, remains highly sensitive to further escalation. Any disruption to supply could quickly push prices higher, posing a key risk for India. Foreign investor activity remains a crucial monitorable. After a phase of sustained outflows, recent sessions have shown signs of stabilisation and selective buying, offering some support to the market. Meanwhile, the ongoing earnings season is driving stock-specific movements,” Ponmudi R added.

On the technical front, he said the Nifty 50 is currently in a consolidation phase near the 24,100-24,200 range, with 23,800 acting as a strong support zone. “The index continues to witness range-bound price action, indicating a pause in momentum with a cautious undertone. The 24,300-24,400 range remains a key resistance zone. A sustained breakout above this band is essential to extend the rally towards the 24,800-25,000 levels”, he said. (ANI)