Geopolitical tensions intensified overnight after an Iranian attack on a US oil tanker rattled global markets, pushing crude oil prices sharply higher and sending equities lower. The developments weighed on US markets on Thursday and triggered declines across Asian markets this morning. Indian equities are also expected to open weaker.
Concerns are mounting as peace talks have not yet begun and the conflict appears to be spreading to more countries, raising fears of a wider regional war.
The US has allowed Indian companies to continue purchasing Russian crude for the next 30 days. The temporary exemption is meant to ease pressure on global oil prices. For India, it offers short-term relief as crude prices surge. UAE’s Murban crude had climbed above $94 a barrel on Thursday.
Gift Nifty in derivatives trading at GIFT City rose to 24,645 early Friday after closing around 24,540 on Thursday night, before slipping again. The signals indicate a weak start for Indian equities.
In the US ADR market, Infosys gained 0.49 percent on Thursday and remained unchanged in after-hours trading. Wipro rose 0.91 percent but slipped 0.90 percent later.
US markets fell sharply on Thursday after reports that Iran attacked a US oil tanker triggered a surge in crude prices. The Dow initially plunged more than 1,100 points before recovering partially as oil prices eased later in the session.
Even after the recovery, the Dow ended with a significant loss, wiping out all its gains for 2026.
Dow Jones fell 784.67 points (1.61 percent) to close at 47,954.74
S&P 500 declined 38.79 points (0.56 percent) to 6,830.71
Nasdaq rose 58.50 points (0.26 percent) to end at 22,748.99
US futures were slightly higher early Friday morning, with the Dow, S&P 500 and Nasdaq futures each showing modest gains.
European markets also ended lower on Thursday, surrendering most of the previous day’s gains. Spain’s benchmark index dropped 1.4 percent amid tensions between Madrid and the Trump administration.
Asian markets were largely down this morning:
Japan’s Nikkei slipped 0.60 percent
Australia’s market fell 1.40 percent
South Korea’s Kospi declined 1.9 percent
Hong Kong’s Hang Seng rose about 0.40 percent
Chinese markets traded lower
Indian markets staged a strong rebound on Thursday after three consecutive sessions of decline. However, the strength seen in the morning faded by afternoon as investors turned cautious.
The Sensex climbed to an intraday high of 80,303.83 and the Nifty touched 24,854.20 before giving up part of the gains.
Sensex rose 899.71 points (1.14 percent) to close at 80,015.90
Nifty gained 285.40 points (1.17 percent) to 24,765.90
Bank Nifty added 300.60 points (0.51 percent) to 59,055.85
Broader markets also advanced strongly:
Midcap 100 rose 1.52 percent to 57,792.55
Smallcap 100 climbed 1.58 percent to 16,538.80
Market breadth was positive. On the BSE, 2,749 stocks rose while 1,515 declined. On the NSE, 2,205 stocks gained and 1,029 fell.
Foreign investors continued to sell equities. Foreign institutional investors recorded net sales of ₹3,752.52 crore in the cash market, while domestic institutions bought shares worth ₹5,153.37 crore.
Sectoral trends included:
IT was the only sector that declined.
Defence stocks surged, led by Mazagon Dock (up 8.8 percent).
Garden Reach Shipbuilders, Cochin Shipyard, Data Patterns, BEL, BDL, MTAR and Astra Microwave also advanced.
Metal stocks including Hindalco, Nalco, Vedanta, Tata Steel and JSW Steel gained strongly.
Reliance Industries and Larsen & Toubro rebounded after recent declines.
Basmati rice exporters rallied sharply. LT Foods surged as much as 19 percent during the day and closed 16.92 percent higher. KRBL rose about 4.5 percent.
Gold prices turned volatile as reports emerged that Poland’s central bank may sell part of its gold reserves to finance increased defence spending. Poland has been one of the largest buyers of gold in recent years.
A stronger dollar and concerns over higher interest rates also weighed on bullion.
Gold briefly touched $5,195.60 an ounce on Thursday but later dropped $59.90 to close at $5,082.30, down 1.17 percent. Early Friday, gold rebounded about 1 percent to around $5,134.
Silver climbed to $85.69 before ending at $82.39 an ounce. It rose again to around $84.12 on Friday morning.
Other precious metals:
Platinum: $2,143
Palladium: $1,644
Rhodium: $11,100
In Kerala, 22-carat gold fell ₹1,200 to ₹1,19,440 per sovereign.
On the Multi Commodity Exchange:
Gold (24 carat, 10 grams) touched ₹1,63,142 before closing at ₹1,59,920
Silver rose to ₹2,74,251 before ending at ₹2,62,499
Industrial metals fell on Thursday amid fears that the war could slow global economic growth. China also lowered its growth expectations to below 5 percent.
Copper fell 0.91 percent to $12,840.75 per tonne
Aluminium dropped 1.61 percent to $3,291.32 per tonne
Tin, nickel, lead and zinc also declined.
Natural rubber continued to weaken in international markets, falling 0.65 percent to 197.40 cents per kg amid recession fears. Synthetic rubber prices rose 1.64 percent.
Other commodities:
Cocoa edged up slightly to $3,026 per tonne
Tea prices remained unchanged
Coffee jumped 3.20 percent
Palm oil slipped to 4,164 Malaysian ringgit per tonne
Prices of petrochemical products such as PVC, polyethylene and polypropylene rose again as crude oil climbed. Urea prices increased 1.57 percent.
The dollar index rose sharply on Thursday to close at 99.32 before easing to around 98.98 on Friday morning.
Euro slipped to $1.158
Pound weakened to $1.3355
Japanese yen fell to 157.46 per dollar
Chinese yuan remained near 6.90 per dollar
The yield on US 10-year Treasury bonds rose to 4.136 percent as demand at recent auctions remained weaker than expected.
The Indian rupee staged a strong recovery on Thursday, gaining 55 paise to close at ₹91.60 against the dollar. Intervention by the Reserve Bank of India supported the currency.
However, early signals suggest the rupee may weaken slightly on Friday. In the offshore non-deliverable forward market, the dollar was trading around ₹91.66.
The Chinese yuan was at ₹13.29 and the euro near ₹106.40, trends that could influence domestic currency trading.
Shipping through the Strait of Hormuz has not fully resumed. Iran’s naval forces reportedly attacked a US oil tanker attempting to move through the route, sending crude prices sharply higher.
Brent crude rose to $86.28 a barrel on Thursday before closing at $84.35. Early Friday it climbed again to $85.41 before easing to around $84.10.
WTI crude ended Thursday at $81.01 and slipped to around $79.50 on Friday morning.
UAE’s Murban crude surged about 16 percent to $94.54 a barrel.
Natural gas prices climbed to $2.976.
Cryptocurrencies declined as investors questioned whether US President Donald Trump’s pro-crypto stance would translate into concrete policy measures.
Bitcoin, which had approached $74,000 recently, slipped below $70,500 on Friday morning.
Ether fell below $2,075
Solana dropped below $84
(March 5)
Sensex: 80,015.90 (+1.14 percent)
Nifty 50: 24,765.90 (+1.17 percent)
Bank Nifty: 59,055.85 (+0.51 percent)
Midcap 100: 57,792.55 (+1.52 percent)
Smallcap 100: 16,538.80 (+1.58 percent)
Dow Jones: 47,954.74 (-1.61 percent)
S&P 500: 6,830.71 (-0.56 percent)
Nasdaq: 22,748.99 (-0.26 percent)
Dollar: ₹91.60 (-₹0.55)
Gold (ounce): $5,082.30 (-$59.90)
Gold (sovereign): ₹1,19,440 (-₹1,200)
Brent crude: $84.35 (+$3.62)