Persistent tensions surrounding Iran remained a key concern for global markets. The United States said it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran after ceasefire talks failed to make progress. Despite the geopolitical uncertainty, Brent crude futures fell to around $87 a barrel, with higher inventories and weaker global demand forecasts helping offset concerns over supply disruptions.
Foreign investor activity remained another drag on the domestic market. Foreign investors had sold Indian shares worth Rs 5.11 billion on Thursday, marking their third consecutive session of selling. At the same time, unchanged US producer prices in July reduced expectations of a Federal Reserve rate hike in September, offering some relief to investors.
The cautious opening followed a strong recovery in the previous market session. The Sensex had risen 790.54 points, or 1.04 per cent, to 76,991.22, while the Nifty gained 197.55 points, or 0.83 per cent, to 24,021.65. Banking and IT stocks were among the biggest contributors to the gains. Nifty IT rose around 2 per cent, while Nifty Bank gained about 1.7 per cent. ICICI Bank and HDFC Bank were among the key heavyweights supporting the indices.
The earlier rally had also been supported by falling crude prices, which analysts said could ease inflationary pressures and provide a boost to corporate margins. Market analyst Vipin Dixena described the recovery as a healthy stabilisation following the previous session’s selloff, while Riyank Arora said the broader trend remained constructive but warned traders to remain selective during the consolidation phase.
Investors were also expected to track company-specific developments. Tata Motors Passenger Vehicles reported an 80 per cent fall in first-quarter profit, while LG Electronics India posted more than 27 per cent profit growth. JSW Cement also reported higher quarterly profit. Together, global cues, crude prices, foreign flows, Fed expectations and corporate earnings were expected to shape Friday’s market direction.
