Global signals for the market on Friday are mixed. Due to increasing tension in the Strait of Hormuz, there has been a huge jump in the prices of crude oil, while continuous selling pressure from FIIs remains on the market. However, a slight uptick in GIFT Nifty indicates that the market may open on a stable level. Investors will keep a close eye on key corporate earnings and global developments today.
Huge surge in crude oil; Hormuz became the main reason
Due to rising tensions in the Strait of Hormuz, crude oil prices have gained almost 4%, and prices have reached above the $106 level. Oil prices hit their highest level in two weeks, rising for the fourth consecutive day. The rally was largely driven by growing concerns about supply—an important indicator for both inflation and the broader market.
US President Donald Trump has directed strict action against ships involved in laying mines in the Strait of Hormuz. He has said that until an agreement is reached with Iran, the Strait of Hormuz will remain closed, and no ship will be allowed to pass through there without US permission. This development has further increased geopolitical tensions.
Ceasefire extended, yet uncertainty remains
The ceasefire between Israel and Lebanon has been extended for another three weeks. However, tensions in the region have not completely subsided, resulting in uncertainty in the market.
Slight gain in GIFT Nifty; global signal weak
GIFT Nifty is trading around 24,235 levels with a gain of about 75 points. In contrast, Dow Futures are showing a slight decline. This indicates that the Indian market may open in a limited range.
Weakness in US markets after touching record high
A lot of ups and downs were seen in the American markets. After hitting an all-time high intraday, the Nasdaq closed down 220 points, while the S&P 500 also remained under pressure. The Dow, after fluctuating in a range of about 650 points, finally closed 180 points lower. **Heavy selling by FIIs; Marginal support from DIIs**
Foreign institutional investors (FIIs) continued their selling for the fourth consecutive day. With sales of ₹3,255 crore in the cash market, the total net outflow increased to a significant level of ₹8,279 crore. In contrast, domestic institutional investors (DIIs) made limited purchases of ₹941 crore, which provided some support to the market.
Fall in gold and silver; global pressure
Weakness was seen everywhere in the commodity market. Silver fell by ₹6,850 to close at ₹2.41 lakh, while gold fell by ₹900 to close below ₹1.51 lakh. In global markets, both gold and silver fell by 1% to 3%.
Impact of IT sector and earnings results
Following the announcement of its earnings results, Infosys’ ADR fell nearly 4%, indicating pressure on the IT sector. Meanwhile, LTM’s performance was in line with expectations, while IEX and Adani Energy had mixed results.
Today’s Earnings Results and Stocks in Focus
Market experts will keep a close eye on the earnings results of Reliance Industries and Shriram Finance today. Additionally, results from F&O components—including Adani Green, IndusInd Bank, L&T Finance, Hindustan Zinc and Lodha—may also determine the market direction.
Preparation of a big deal in GMR Airports
According to reports, French company ADP is preparing to sell about 7.3% of its stake in GMR Airports. The potential deal is valued at around ₹9,900 crore, and is expected to keep the stock at the center of the market.
