Early buying interest pushes benchmarks higher; IT stocks lead gains while oil prices cool on US-Iran peace signals

Indian equity markets started Friday on a firm footing, with the Sensex comfortably trading above the 76,000 level and the Nifty inching closer to the psychological 24,000 mark during early deals. The uptick followed a truncated holiday-shortened week and came amid mixed cues from global peers.

The 30-share Sensex was seen hovering around 76,150 levels, up nearly 280 points from its previous close, while the broader Nifty traded near 23,980, showing gains of about 70 points. The market remained closed on Thursday, May 28, on account of Bakri Eid.

Early Gains on D-Street

Investors appeared to shrug off the modest losses from the last trading session. On May 27, the Sensex had closed 142 points lower at 75,868, while the Nifty slipped 7 points to end at 23,907. Banking shares had witnessed the maximum selling pressure that day.

However, Friday’s early session saw renewed buying interest across select pockets, though sectoral performance remained mixed. Nifty IT emerged as the top gainer, rising 1.74 per cent, while Consumer Durables and Chemical indices traded in the red.

Expert Sees Rangebound Moves

Arun Mantri, founder of Mantri Finmart, said the Nifty is likely to trade within a broad range of 23,600 to 24,100 points in the coming sessions. Market participants are advised to adopt a “buy on dips” strategy, given the prevailing support levels and lack of major negative triggers domestically.

“The range is likely to hold unless there is a fresh global shock. Investors with a medium-term view can look at accumulating quality names on declines,” Mantri reportedly said.

Oil Dips on US-Iran Talks

Sentiment got a minor boost from cooling crude prices. Brent crude eased to around $93 per barrel on Friday following reports that peace talks between the United States and Iran were underway. Lower oil prices are typically viewed as positive for India, a major net importer of crude.

US Vice-President JD Vance told the BBC that a formal agreement to end the conflict was “very close” but cautioned that key differences remained unresolved. “It’s too early to say when or if an agreement will be finalised, though negotiators are very close,” Vance said. The proposed deal reportedly includes a 60-day ceasefire extension and formal discussions on Iran’s nuclear programme.

Rupee Recovers Marginally

The Indian rupee strengthened by 5 paise to settle at 95.53 against the US dollar on a provisional basis, aided by softer crude prices and early equity inflows. However, the currency remains under broad pressure given the sustained strength of the greenback overseas.

Global Cues Offer Mixed Support

Overnight, US markets ended marginally higher. The Dow Jones added 25 points (0.05 per cent) to close at 50,669, while the Nasdaq surged 243 points (0.91 per cent) and the S&P 500 rose 43 points (0.58 per cent). Most Asian markets advanced on Friday, with South Korea’s KOSPI jumping nearly 2 per cent, Japan’s Nikkei climbing 1.86 per cent, and Hong Kong’s Hang Seng edging up 0.25 per cent.

FIIs Remain Net Sellers

Foreign institutional investors continued their selling spree, offloading shares worth ₹1,043 crore on May 27. Over the last seven days, FII outflows stood at ₹2,629 crore, while in the past 30 days, they have pulled out nearly ₹42,905 crore. In contrast, domestic institutional investors remained net buyers, pumping in ₹3,821 crore on the same day.

Market participants will closely track progress on the US-Iran negotiations and crude price movements in the coming sessions. For now, the early morning momentum suggests some resilience, though analysts caution that sustained upmoves would require broader participation beyond IT stocks.

Indian Stock Markets Plunge as Geopolitical Tensions Escalate

Indian stock markets plunge sharply on Monday, 2 March 2026, as rising tensions in the Middle East triggered a wave of panic selling across global equities. The benchmark Sensex nosedived over 1,100 points to 80,111 in early trade, while the Nifty slipped below the crucial 25,000 mark, reflecting deep investor anxiety amid the intensifying US-Israel-Iran conflict.

The sell-off comes as oil prices surged more than 10% and gold became nearly ₹5,000 costlier in a matter of days, driven by strong safe-haven demand.

Oil Prices Surge as Hormuz Shipping Halted

Global crude markets reacted swiftly after leading shipping giant Maersk announced suspension of vessel movements through the strategically vital Strait of Hormuz.

The 167-km-long waterway handles nearly 20% of the world’s petroleum supply. Any disruption here directly impacts global energy flows.

Brent crude jumped over 10%, crossing $78 per barrel, raising concerns about imported inflation in India.

Why this matters for India:

 Over 85% of India’s crude oil needs are imported

 More than 10% of India’s non-oil exports pass through the Hormuz route

 Rising freight and insurance costs may hit exporters

 Gold Prices Today: Safe-Haven Buying Intensifies

As equity markets bled, investors rushed toward safe assets. Gold futures for April expiry rose over 3% on MCX, making gold nearly ₹5,000 more expensive in recent sessions.

Silver prices also saw sharp gains.

Market analysts suggest that geopolitical uncertainty, combined with fears of prolonged supply disruption, is fueling precious metal demand.

Market Volatility Spikes; India VIX Jumps 20%

The fear gauge, India VIX, surged nearly 20% to 16.38 — a nine-month high. The last time volatility reached similar levels was during the 2025 Iran-Israel standoff.

A spike in VIX indicates heightened uncertainty and expectations of wider market swings in the coming days.

FIIs Continue Heavy Selling

Foreign institutional investors (FIIs) remained net sellers:

 ₹7,536 crore sold on 27 February

 ₹11,002 crore sold in February

 ₹41,435 crore offloaded in January

Meanwhile, domestic institutional investors (DIIs) cushioned the fall with aggressive buying worth ₹17,324 crore in February.

This persistent FII outflow has amplified the impact of the global risk-off sentiment.

Sectoral Impact: Defence Gains, Airlines Crash

While most sectors traded deep in red, defence stocks surged over 10% amid rising geopolitical risks. Companies like:

 Paras Defence

 ideaForge Technology

saw strong buying interest.

On the other hand, airline stocks crashed due to Middle East airspace disruptions and potential revenue losses.

Realty and media sectors were among the worst performers, with Nifty Realty falling over 2%.

Global Markets Reflect Risk-Off Mood

US markets had earlier closed lower:

 Dow Jones Industrial Average down 1.05%

 Nasdaq Composite down 0.92%

 S&P 500 down 0.43%

Asian markets showed mixed trends, with Japan’s Nikkei falling over 1.5%.

Abu Dhabi and Dubai exchanges remain shut for two days, while Iran’s markets continue suspended.

Expert View: Should Investors Buy the Dip?

Shrikant Chauhan, Head of Equity Research at Kotak Securities, said that if Nifty sustains below 25,000, further selling pressure could emerge. However, he suggested selective buying around the 24,600–24,500 zone with strict stop-loss at 24,300.

Actionable Takeaways for Investors:

 Avoid panic selling

 Focus on quality large-cap stocks

 Maintain higher cash allocation

 Monitor oil price movement closely

 Volatility May Persist

The fact that Indian stock markets plunge at the first sign of global escalation highlights the interconnected nature of financial systems. With oil prices surging and gold prices today reflecting safe-haven demand, markets may remain volatile in the near term.

Much now depends on whether diplomatic efforts ease tensions or if disruptions in the Strait of Hormuz deepen. Until clarity emerges, investors should brace for sharp swings and prioritize disciplined risk management.

Indian Stock Market Update: Mixed Trend on Dalal Street

The Indian stock market opened with muted momentum on Monday as traders remained cautious amid thin holiday season volumes. The Sensex today traded 50 points higher at 85,100, while the Nifty 50 edged up by just 10 points to 26,050, reflecting a subdued tone on Dalal Street.

A strong rally in metal shares was among the few bright spots, but overall participation remained weak as investors awaited fresh triggers ahead of the New Year.

Sector Watch: Metals Shine, Broader Market Cools

Across sectoral indices on the NSE, the trading pattern was largely mixed.

• Gains were visible in metal, IT, auto, and select chemical stocks.
  
  

• However, banking, pharma, and FMCG counters witnessed mild profit-booking.
  
  

Market experts attribute the metal rally to firm global commodity prices and renewed demand sentiment from China and other Asian economies.

“The metal index continues to outperform due to steady global demand recovery. However, overall market activity is muted because of year-end holidays,” said R. Sharma, a senior market analyst at an Indian brokerage.

Global Cues Remain Mixed

Asian markets offered no clear direction to domestic investors. South Korea’s KOSPI rose 1.52% to 4,192, while Japan’s Nikkei slipped 0.39% to 50,550.
Meanwhile, Hong Kong’s Hang Seng added 0.44% and Shanghai Composite climbed 0.31%, indicating selective buying across regional exchanges.

Overnight in the US, major indices closed marginally lower. The Dow Jones Industrial Average fell 0.041%, Nasdaq Composite declined 0.086%, and the S&P 500 slipped 0.030%, as traders booked profits at record highs.

FII and DII Activity: Domestic Buyers Offer Support

According to data from December 26, Foreign Institutional Investors (FIIs) offloaded shares worth ₹317.56 crore, continuing their monthly selling streak.
In contrast, Domestic Institutional Investors (DIIs) emerged as net buyers with purchases worth ₹1,772.56 crore, offering solid support to the markets.

So far this month, FIIs have sold equities worth ₹24,148.33 crore, while DIIs have accumulated stocks worth ₹64,056.61 crore—underscoring the strong domestic buying momentum buffering against foreign outflows.

Recent Trend: Sensex Ends Last Week Lower

On Friday, December 26, the Sensex fell 367 points to close at 85,041, and the Nifty dropped 100 points, ending at 26,042. Analysts believe the current consolidation phase may continue in the short term until trading volumes normalize in January 2026.

Outlook: Range-Bound Ahead of New Year

With global markets entering a low-activity phase and investors preferring to hold cash ahead of year-end, experts expect the Indian stock market update to remain modest in the coming sessions.

Focus will soon shift to quarterly earnings and the upcoming Union Budget 2026, which may set the tone for the markets in the new year.