Indian equities declined on Friday, with the benchmark indices logging their longest weekly losing streak in over seven months, as escalating tensions involving Iran kept crude oil prices elevated and unsettled investor sentiment.
The Sensex fell 1,690 points, or 2.3 per cent, to close at 73,583, while the Nifty 50 dropped 487 points, or 2.09 per cent, to settle at 22,820. For the week, both indices lost 1.3 per cent, marking their fifth consecutive weekly decline — the longest since August 2025.
The sell-off eroded Rs 8.9 trillion in investor wealth, with the total market capitalisation of BSE-listed firms falling to Rs 422.2 trillion.
Trump on Thursday said the US would defer plans to strike Iran’s energy infrastructure for another 10 days, adding that negotiations were progressing. Earlier, he had urged Iran to reopen the Strait of Hormuz — a vital artery for global energy trade that handles roughly a fifth of global oil and LNG flows. The waterway remains effectively blocked, triggering supply concerns and pushing up crude prices. Some estimates suggest oil could surge to $200 per barrel if disruptions persist through June.
The prolonged conflict has stoked fears of slower economic growth, weaker corporate earnings, and rising inflation globally. Reflecting these concerns, the rupee slid to a record low of 94.81 against the dollar.
Adding to global uncertainty, China launched a series of probes into US trade practices in response to similar actions by the Trump administration.
India remains particularly vulnerable to rising crude prices due to its heavy reliance on energy imports. Goldman Sachs, in a recent note, cut its CY26 earnings growth forecast for India to 8 per cent from 16 per cent earlier, and warned of further downgrades over the coming quarters.
Among stocks, Reliance Industries declined 4.5 per cent — its steepest fall since June 2024 — and was the biggest drag on the Sensex, pulling it down by 368 points. The decline followed the government’s decision to reimpose windfall taxes on diesel and aviation turbine fuel exports. HDFC Bank also weighed on the index, falling 3.3 per cent and dragging it by 328 points.
Market breadth remained weak, with 3,615 stocks declining against 761 advancing.
Foreign portfolio investors (FPIs) were net sellers of Rs 4,367 crore, while domestic institutional investors (DIIs) provided partial support with net purchases of Rs 3,566 crore.
Despite the near-term uncertainty, some market participants see opportunities emerging.
“A lot of critical energy infrastructure has been damaged, and recovery could take years. For long-term investors, sticking to asset allocation and fundamentals is key. Valuation excesses are correcting, which may create opportunities,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.
Technically, analysts see near-term resistance levels ahead.
“For traders, 23,000 on the Nifty and 74,500 on the Sensex will act as immediate resistance. As long as the indices remain below these levels, sentiment is likely to stay weak,” said Amol Athawale, vice-president — technical research at Kotak Securities.
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