IGI Logo

India's equity benchmarks are likely to open lower on Friday, setting the stage for their biggest weekly drop in more than a year, as the escalating Middle East conflict lifts Brent crude and forces investors from risky assets into cash.

GIFT Nifty futures were trading at 23,549.5 as of 07:57 a.m. IST, indicating the Nifty 50 will open below Thursday's close of 23,639.15.

The benchmark has fallen 3.3% so far this week, already marking its steepest weekly drop since December 2024. The benchmark has dropped 6.1% since the U.S.-Israeli war on Iran began on February 28.

The drop has been accompanied by heavy foreign investor selling, with overseas funds offloading about $49 billion worth of Indian shares so far in March, setting up the biggest monthly outflows since January 2025.

Brent crude oil futures surged to $100 per barrel on Thursday, due to the raging Mideast conflict and disruption to supplies through the crucial Strait of Hormuz.

However, prices were flat on the day after the U.S. issued a 30-day license allowing countries to buy Russian oil stranded at sea, easing supply pressures. [O/R]

Leaders of Iran, Israel and the U.S. have all vowed to fight on as the war approached the two-week mark on Friday, killing thousands, displacing millions and rattling financial markets.

Higher oil prices are detrimental for India - the world's third-largest crude importer - as they could widen the fiscal deficit, stoke inflation and weigh on economic growth.

India's retail inflation rose to 3.21% year-over-year in February, driven by higher prices of food, personal care products and precious metals, but remained below the central bank's 4% target.

STOCKS TO WATCH

** Specialty chemicals maker Balaji Amines says company experiencing significant logistics disruptions in ammonia procurement as Mideast war disrupts global supply chains

** Max Financial Services approves raising 20 billion rupees via qualified institutional placement or any other method

($1 = 92.3680 Indian rupees)