US Futures Gains: Nifty, Sensex End Lower Despite Recovery From Day’s Lows; Bank Nifty Gains 0.24%

Indian benchmark indices ended lower on Friday as escalating geopolitical tensions in the Middle East pushed crude oil prices sharply higher, reviving concerns over inflation, interest rates and global economic growth.

The Nifty 50 witnessed a volatile trading session, opening at 23,270.30 and slipping to an intraday low of 23,231.40 in early trade. However, buying interest emerged at lower levels, helping the index recover gradually during the session. The benchmark moved above the 23,400 mark in afternoon trade and touched a high of 23,448.10 before giving up some gains towards the close.

At the close, the Nifty 50 declined 79.70 points, or 0.34%, to 23,398.10, while the Sensex fell 120.84 points to 74,781.76. The Bank Nifty gained 0.24%, outperforming the frontline indices.

The volatility gauge, India VIX, climbed more than 4% and moved above the 12 mark, indicating increased uncertainty among market participants.

On a weekly basis, the Nifty 50 declined 2.09%, marking its fifth consecutive weekly decline.

Crude Oil Rally Raises Global Inflation Concerns

Brent crude prices witnessed sharp volatility during Friday’s session after briefly crossing the $109 per barrel mark amid rising tensions between the US and Iran. Prices later eased below $105 per barrel due to profit booking and technical correction but remained on track for a significant weekly gain.

The surge in crude oil prices has raised concerns over possible disruptions in global energy supplies. Any prolonged impact on oil shipments from the Middle East could increase inflationary pressure and influence global central banks’ interest rate decisions.

Rupee Under Pressure as Oil Prices Impact Sentiment

The Indian rupee remained under pressure on Friday as rising crude oil prices increased concerns over India’s import bill and external balance.

The domestic currency declined for the fourth consecutive session, falling 0.1% to ₹95.55 per US dollar, heading towards a weekly decline of more than 1%. Weakness in domestic equities and cautious sentiment in bond markets also weighed on the rupee.

However, intervention from the Reserve Bank of India helped restrict the pace of depreciation. Despite this support, sustained crude oil strength remains a key risk for the currency due to India’s high dependence on imported oil, which could impact inflation and widen the trade deficit.

Broader Market Ends Lower

The broader market also remained under pressure, with mid and small-cap stocks witnessing selling activity.

The Nifty Midcap 100 index declined 0.26%, while the Nifty Smallcap 100 index slipped 0.58% during Friday’s session.

Bank Nifty Outperforms; Realty Stocks Continue Slide

The majority of the sectoral performance remained weak, with only four out of 11 major sectoral indices ending the session in positive territory. The Nifty Bank index emerged as the top-performing sector, rising 0.24%. Banking stocks gained momentum, supported by buying interest in key private sector banks. Yes Bank surged over 5%, while HDFC Bank gained more than 2% after a Bahrain court ruled in favour of the bank in a bond-related case.

Meanwhile, the Nifty Realty index was the biggest laggard, declining 2.70%. The sector extended its losing streak for the sixth consecutive session and touched a 10-week low amid continued selling pressure.

European Markets Continue Higher

European equity markets maintained their positive momentum during Friday’s session. 

Germany’s DAX index gained 0.54% to 25,537.14, while the UK’s FTSE 100 advanced 0.54% to 10,666.61. France’s CAC 40 climbed 0.61% to 8,166.22.

The gains across major European indices indicated improving risk appetite despite ongoing global uncertainty.

US Futures Signal Positive Opening on Wall Street

US stock futures traded higher, pointing towards a positive opening for Wall Street.

Dow Jones futures gained 0.58% to 52,395.00, while S&P 500 futures advanced 0.58% to 7,642.75. The Nasdaq 100 futures outperformed, rising 0.66% to 29,326.50, supported by strength in technology stocks.