Indian equity benchmarks plunged sharply on Friday morning, mirroring declines across major Asian markets, as crude oil prices surged over 13% amid fresh geopolitical tensions in the Middle East. The sharp spike in oil prices weighed heavily on investor sentiment and triggered broad-based selling.
Shares of state-owned oil marketing companies, including BPCL, HPCL, and IOC, dropped by up to 4%, reflecting concerns over rising input costs. The broader market also came under pressure, with most sectoral indices trading in the red.
Brent crude futures for August delivery surged to $78.50 per barrel during early trade before easing slightly to $75.36, still up 8.79% at the time of reporting. The rally followed news of military strikes targeting nuclear and missile infrastructure in the region, raising concerns over potential supply disruptions through the vital Strait of Hormuz.
Asian markets reacted negatively to the developments, with indices in Japan, Hong Kong, mainland China, South Korea, and Taiwan falling as much as 1.3%.
“Friday the 13th is living up to its ominous reputation. Despite a recent RBI rate cut, Indian markets are under pressure due to foreign fund outflows and escalating global tensions,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities. He noted that foreign institutional investors have sold ₹3,549 crore so far in June, adding to the volatility.
Oil market analysts attributed the sharp move in crude prices to both geopolitical risks and a larger-than-expected decline in U.S. crude inventories, which signals strong demand. Mehta Equities expects crude to remain volatile in the near term, with support for Brent seen at $70.40–68.50 and resistance at $74.00–75.20. In rupee terms, support is projected at ₹5,690–5,630, with resistance at ₹6,200–6,450.
Emkay Global said the recent price surge is primarily driven by geopolitical uncertainty, despite OPEC+ increasing output. The firm maintained its Brent forecast at $70 per barrel for FY26.
From a technical perspective, Hardik Matalia, Derivative Analyst at Choice Broking, identified key support levels for the Nifty at 24,500 and 24,400. A breach below these could lead to extended selling pressure, he warned.
With global developments unfolding rapidly and oil prices remaining elevated, traders can expect heightened volatility in the sessions ahead.
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