India's stock market resumed its decline on Friday, snapping a two-day positive run, tracking global cues as the Iran war and higher oil prices weighed on sentiment. The Nifty 50 and BSE Sensex both fell 1.5% during the session.
The blue-chip indices are set to log their fifth consecutive weekly loss, the longest stretch since August. The conflict in the Gulf, high energy prices and a weaker rupee have taken a toll on Dalal Street,
Goldman Sachs has lowered its 12-month target for the Nifty to 25,900 from 29,300, citing a worsening macro backdrop driven by persistently high energy prices. The revised target implies a ~13% potential upside, based on moderated earnings growth assumptions and a target price-to-earnings multiple of 19.5x. The brokerage has also downgraded Indian equities to “market-weight” from overweight, reflecting a more cautious stance as global and domestic risks begin to weigh on the outlook.
Weak Global Cues
Asia-Pacific markets plunged following a volatile session on Wall Street overnight, as the prospect of a peace deal in the Gulf remained murky amid contradictory messaging from the US and Iran.
South Korea led the broader declines in the region with the blue-chip Kospi pulling back 3.6% and Japan's Nikkei 225 slipping 1.6%. Hong Kong's Hang Seng index fell 0.2% while mainland China's CSI 300 tumbled 0.4%.
In New York, the benchmark S&P 500 index closed 1.7% lower on Wednesday, its biggest daily drop since the beginning of 2026. The Nasdaq Composite fell 2.4%, ending in correction territory. The Dow Jones Industrial Average slid 1.01%.
ALSO READ: Nikkei, Kospi Drop, Oil Slips On Iran Deadline Extension: Markets Wrap
FII Outflows
Foreign portfolio investors dumped stocks worth Rs 1,805 crore on Wednesday, extending their selloff to a 19th session. The year-to-date outflow has hit Rs 1.5 lakh crore.
Overseas funds have withdrawn money from emerging markets like India given geopolitical uncertainty and weaker currency.
Weak Rupee
The Indian rupee has weakened sharply, driven by rising crude prices, sustained foreign outflows, and ongoing global uncertainty, indicating continued pressure on external balances. The INR hit a new low today, depreciating past the 94 level.
The technical structure remains strongly bullish in favour of US dollar, marked by higher highs and higher lows, according to analysts.
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