Nifty, Sensex poised for lower open amid escalating Middle East tensions

Stock market news: Indian benchmarks are expected to open lower on Friday, mirroring a global selloff triggered by escalating tensions in the Middle East. Media reports of Israeli missile strikes on Iranian targets are fueling market anxiety.

The GIFT Nifty was trading at 21,670 as of 8:02 am, suggesting that the Nifty 50 would open lower than its previous close of 21,995.85 on Thursday.

This negative sentiment follows a more than 2 per cent drop in MSCI's broadest index of Asia-Pacific shares and a 1.3 per cent decline in US stock futures. These declines came amid reports indicating Israeli missile strikes on a site in Iran, intensifying geopolitical tensions in the region.

Thursday marked the fourth consecutive day of losses for Indian markets, with the benchmark Nifty 50 and S&P BSE Sensex shedding approximately 3.3 per cent each over the last four sessions. Foreign portfolio investors (FPIs) were net sellers of Indian stocks, offloading 42.60 billion rupees (about $509 million) worth of shares on Thursday alone, adding to the 157.63 billion rupees divested in the preceding three sessions.

In contrast, domestic institutional investors have remained net buyers for seven consecutive sessions.

Market volatility surged to a one-month high on Thursday, with analysts anticipating sustained volatility in the lead-up to national elections commencing on Friday. Election results are scheduled to be announced on June 4.

Key stocks to watch amidst this market backdrop include:

• Infosys: The software services company projected annual revenue below expectations following lower-than-expected March quarter revenue.
• Bajaj Auto: Reporting better-than-anticipated March quarter profits, attributed to robust domestic demand and a rebound in two-wheeler exports.
• ITC: Entering into a share purchase agreement to acquire 100 per cent share capital of Blazeclan Technologies for Rs 485 crore.