Benchmark stock indices Sensex and Nifty took a severe beating on Friday morning, in line with Asian peers, as attack on Iran’s nuclear facilities by Israel sent Brent crude oil soaring by 13 per cent, hurting investor sentiment.
OMC stocks BPCL, HPCL and IOC fell up to 4 per cent.
Markets across Japan, mainland China, Hong Kong, Korea and Taiwan fell up to 1.3 per cent as Brent crude oil futures for August delivery surged over 13 per cent to hit a high of $78.50 a barrel earlier today. They were still up 8.79 per cent at $75.36 a barrel at the time of writing this copy.
According to Reuters, Israel announced that it had targeted Iran’s nuclear sites, ballistic missile manufacturing facilities, and key military figures, marking the beginning of what it called a sustained operation to stop Tehran from acquiring a nuclear weapon.
Following the development, the BSE Sensex tanked 1,337 points, or 1.63 per cent, to hit a low of 80,354.59. Nifty stood at 24,473, down 415.20 points or 1.67 per cent.
“On this ominous Friday the 13th, markets are gripped by caution as bearish signals intensify-despite the RBI’s jumbo rate cut, banking stocks remain weak, and FIIs have sold Rs 3,549 crore so far this June, contributing to continued volatility. Geopolitical risks are also in play, with Trump threatening 55 per cent tariffs on China, which downplays the US deal, while WTI crude stays at $75 per barrel amid US-Iran tensions,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Crude oil prices
With Israel launching a pre-emptive strike and Iran vowing retaliation-including potential attacks on US bases-the threat to the Strait of Hormuz, a key global oil artery, looms large, analysts said. Supporting the price rally, US crude inventories fell more than expected, signaling robust demand. Additionally, weaker US inflation data reinforced expectations of a Fed rate cut by September, potentially lifting future oil demand.
Mehta Securities expects crude oil prices to remain volatile with support at $70.40-68.50 and resistance at $74.00-75.20 in today’s session. In rupee terms, crude oil has support at Rs5,690-5,630 while resistance at Rs 6,200-6,450, the brokerage said.
Emkay Global said oil prices continued to be volatile, with geopolitical risks and trade developments driving Brent from $60 a barrel a month ago. This is even as OPEC+ continued to raise production. “We believe fundamental factors would prevail and do not see any reason for upping FY26E Brent assumption of $70/bbl,” it said.
As far as the index levels were concerned, Hardik Matalia, Derivative analyst at Choice Broking said a strong support for the Nifty was placed at 24,500, followed by 24,400; a breach below these levels could trigger extended selling pressure, he suggested ahead of the opening bell.
“On the upside, the index must reclaim and sustain above 24,800, with the 25,000-25,200 zone acting as a critical hurdle for any meaningful upside. Given the ongoing geopolitical tensions and fragile global cues, traders are advised to maintain a cautious stance, avoid large overnight exposures, and strictly adhere to stop-loss levels while navigating short-term opportunities,” he said.