After rising for five straight sessions, Indian stock markets ended lower on Friday as investors booked profits. Weak global signals, pressure on IT shares and geopolitical concerns affected sentiment. The Sensex fell 607 points to close at 76,802.90, while the Nifty50 declined 155 points to end at 24,013.10. Market participants will now keep an eye on several factors that could influence trading in the coming days.
MIDDLE EAST WORRIES
Although the United States and Iran agreed to a 60-day ceasefire to allow negotiations, uncertainty remains. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed on Saturday that the Strait of Hormuz had been closed, but the US military stated that commercial shipping through the route was continuing normally.
These developments could affect attempts to secure a temporary peace agreement brokered by Pakistan and signed earlier this week by US President Donald Trump and Iranian President Masoud Pezeshkian. Officials from both countries were expected to meet in Switzerland on Sunday, despite disagreements over the status of the Strait of Hormuz.
OIL IN FOCUS
Oil prices moved higher on Friday after planned talks between the United States and Iran in Switzerland were cancelled, raising fresh concerns about the future of the ceasefire.
Brent crude settled 0.9 per cent higher at $80.57 a barrel, while West Texas Intermediate crude traded around 1.2 per cent higher at $77.54. Prices had eased briefly following a ceasefire agreement between Israel and Iran-backed Hezbollah, but renewed uncertainty has again brought oil markets into focus.
IT UNDER PRESSURE
IT stocks were among the biggest losers on Friday, with Infosys, TCS, Tech Mahindra and HCL Tech falling sharply. The decline followed a steep drop in Accenture’s shares in the US after the company lowered its revenue growth outlook for FY26 and issued a weaker-than-expected forecast for the coming quarter.
Technical indicators suggest that the sector remains weak. The index is trading below important moving averages, while momentum indicators point to continued selling pressure. Analysts see the 27,000–27,050 range as an important support level, with resistance placed near 28,250–28,300.
RUPEE HOLDS FIRM
The rupee ended Friday’s session almost unchanged at 94.32 against the US dollar after fluctuating during the day. Support from debt inflows and the unwinding of long dollar positions helped the currency, although gains were limited by weakness in regional currencies and outflows related to index adjustments.
Despite Friday’s flat close, the rupee recorded its best weekly performance in 11 weeks and has gained in four of the last five weeks. Market experts believe sentiment towards the currency has improved, helped by recent measures announced by the Reserve Bank of India and softer oil prices.
FIIs RETURN
Foreign institutional investors became net buyers during the week, investing about Rs 3,400 crore in Indian equities. This marks an improvement in overseas investor confidence after a long period of selling.
Domestic institutional investors also remained active buyers, purchasing shares worth nearly Rs 7,100 crore. Their steady support helped reduce market volatility and contributed to the recent recovery. Continued buying by both domestic and foreign institutions could provide support to markets in the near term.
NIFTY LEVELS
According to market analysts, the broader trend for the Nifty remains positive as the index continues to trade above its 20-day and 50-day exponential moving averages. The daily Relative Strength Index (RSI) is at 58, indicating that underlying momentum is still favourable.
The 23,850–23,800 zone is expected to act as immediate support. A fall below this level could lead to further weakness towards 23,500. On the upside, resistance is seen between 24,150 and 24,200. A sustained move above 24,200 may improve sentiment and open the door for a rise towards 24,500.
