Indian benchmarks react negatively to escalating tensions between US and Iran

The Indian benchmark indices reacted to the escalating tensions between US and Iran, on Friday. The negative trend was also further seen in the global markets. The Sensex fell as much as 0.39 per cent to close at 41,464.61, while the Nifty 50 dropped by 0.45 per cent to close at 12,226.65. On weekly front, Nifty and Sensex closed down by 0.40 per cent and 0.96 per cent respectively.

The global geopolitical tensions between to US-Iran was the key reason for the decline. The weak rupee and surge in crude oil price created selling in frontline blue chip stocks. Indian equity benchmarks ended Friday’s trade on a lower note, due to selling in frontline blue chip stocks along with a weak rupee. Increase in crude oil prices has direct impact on raw material prices and results in hurting operating margins.

The IT index was the top gainer which has supportive cues due to weak rupee. The BSE IT index ended higher by 1.51 per cent and healthcare closed up by 0.45 per cent, while power closed down by 1.20 per cent, auto by 1.16 per cent, PSU by 0.94 per cent which were the top losing indices on BSE.

Going ahead, the markets will take cues from third quarter earnings season. Nearly 15 companies will report their Q3FY20 numbers.