Stock markets in India, along with many Asian markets, fell sharply on Friday morning after Israel attacked Iran’s nuclear facilities, causing Brent crude oil prices to jump 13% and worrying investors.
In India, stocks of oil companies like BPCL, HPCL, and IOC dropped by up to 4%. Other Asian markets such as Japan, China, Hong Kong, Korea, and Taiwan also fell by up to 1.3%. Brent crude oil futures for August went as high as $78.50 per barrel but later settled around $75.36 per barrel.
According to Reuters, Israel said it targeted Iran’s nuclear sites, missile factories, and military leaders in an effort to stop Iran from developing nuclear weapons.
As a result, the BSE Sensex dropped 1,337 points (1.63%) to 80,354.59, while the Nifty fell 415.20 points (1.67%) to 24,473.
Prashanth Tapse from Mehta Equities said that markets were already weak due to several reasons: despite RBI cutting interest rates, banking stocks stayed down, foreign investors sold shares worth ₹3,549 crore this month, and global tensions were adding to the worries. US-Iran tensions and threats of US tariffs on China have also created uncertainty.
Oil prices and market outlook
Israel’s attack and Iran’s promise of revenge, including possible attacks on US bases, have increased fears about the Strait of Hormuz, a major global oil route. US crude oil stocks also dropped more than expected, suggesting strong demand. Meanwhile, lower US inflation data raised hopes that the US Federal Reserve might cut rates by September, which could further boost oil demand.
Mehta Securities expects oil prices to remain unstable, with support at $70.40–68.50 and resistance at $74.00–75.20. In Indian rupees, crude oil support is between ₹5,690–5,630, and resistance is at ₹6,200–6,450.
Emkay Global noted that oil prices have been volatile, mainly due to global tensions and trade issues, even as OPEC+ has increased oil production. The brokerage still expects Brent crude to average $70 per barrel for the financial year 2025-26.
Market levels and advice for traders
Hardik Matalia from Choice Broking said Nifty has strong support at 24,500 and 24,400. If these levels break, the market may fall further. On the other hand, if Nifty can stay above 24,800, it could move toward 25,000-25,200, but this level will be a major hurdle.
He advised traders to be cautious due to the ongoing global tensions, avoid holding big positions overnight, and strictly follow stop-loss limits when trading.