Indian equity markets are expected to witness a volatile trading session on Friday, May 8, amid weak global cues and rising geopolitical tensions between the United States and Iran. Trends in Gift Nifty also indicated a negative opening for domestic markets.
Gift Nifty was trading around 24,283, down nearly 102 points or 0.42%, signalling a weak start for Indian benchmark indices. Investor sentiment may remain under pressure due to weakness across global markets and concerns over escalating tensions between the United States and Iran, which could impact the Sensex and Nifty 50.
Overall, volatility and caution are expected to dominate the trading session, with international cues and geopolitical developments likely to determine market direction.
Wall Street closed lower on Thursday, with the Dow Jones, S&P 500 and Nasdaq ending in negative territory. Asian markets also traded weak, with Japan’s Nikkei 225 and South Korea’s Kospi closing lower, while Hong Kong futures indicated a subdued opening.
Geopolitical tensions in the Middle East have intensified again amid recent developments and reports of military action in the Strait of Hormuz involving the United States and Iran. The uncertainty pushed Brent crude oil prices above $101 per barrel, raising concerns over higher energy costs. Gold prices also advanced as investors shifted towards safe-haven assets. The dollar index remained firm, which may continue to weigh on emerging markets.
Indian equity benchmarks witnessed volatile trade on Thursday and ended nearly flat despite early gains. Sensex and Nifty posted marginal declines, while midcap and smallcap stocks showed strength, reflecting selective buying interest among investors.
Market participants will closely track fourth-quarter earnings announcements from several major companies, including State Bank of India, Titan Company, Hyundai Motor India, Swiggy, Multi Commodity Exchange of India and Urban Company. The quarterly results are expected to influence market direction during the session.
Several stocks are also expected to remain active following corporate developments and earnings announcements.
BSE reported a more than 61% increase in profit, while Britannia Industries posted profit growth of more than 21%. Cochin Shipyard secured a major defence and industrial order, while PNC Infratech received a large infrastructure project in Lucknow. V-Mart Retail reported a decline in profit. CCL Products India posted improved earnings, while Mahanagar Gas reported a decline in profit.
Market movement during the session is expected to be influenced by global cues, crude oil prices, dollar strength and corporate earnings announcements.
