Indian equity markets witnessed a cautious opening on Wednesday, May 27, before recovering to positive territory as investors assessed fresh geopolitical developments in West Asia alongside mixed global cues. According to latest NSE data, the NIFTY50 opened 0.14% or around 33 points lower at 23,880.35 points compared to the previous market close of 23,913.70 points, as of 9:15 AM. The BSE SENSEX opened 0.09% or 69 points lower at 75,939 points compared to 76,009.70 points at the previous close. However, both indices recovered during early trading, with NIFTY50 rising 0.07% to 23,929.80 points and SENSEX up 0.16% to 76,090 points as of 9:21 AM. During the pre-market session, GIFT Nifty futures were trading 0.08% lower at 23,894 points at 9:06 AM, indicating early pressure on benchmark indices.
Market sentiment came under pressure after the United States reportedly carried out strikes in southern Iran on Tuesday, raising concerns over the stability of the fragile ceasefire framework between the two nations. As reported by The Economic Times, the development surprised markets, especially as Washington had repeatedly indicated that negotiations were progressing and that a broader agreement could be within reach. The latest escalation has revived concerns around potential disruptions to global energy supply chains, particularly in the oil-rich West Asia region. Market experts noted that geopolitical headlines continue to dominate risk appetite, with investors reacting cautiously to every new development in the conflict. The muted trend reflects investor caution after fresh US military strikes in southern Iran dented hopes of a near-term diplomatic breakthrough between Washington and Tehran. Recent developments include reports that Lebanon's Health Ministry claimed that Israel carried out an airstrike on Tuesday, killing 31 people and wounding 40 others, amid the ongoing ceasefire deal in the region.
Crude oil prices remained highly volatile as investors monitored developments in the US-Iran relationship, with Brent crude oil prices trading above $95 per barrel on Wednesday's market, compared with $96.64 per bbl at the previous commodity market close. According to Investing.com data, oil prices have cooled 5% over the last five trading days on the easing global market sentiment, but the energy prices still pose the risk of a sudden increase in case the third round of negotiations fails for a potential peace deal. Markets are now closely watching whether diplomatic talks can prevent further disruptions to energy supply routes in the region, with oil prices continuing to remain a key variable for Indian markets given their direct impact on inflation, fiscal balances, and corporate margins.
Both Indian indices ended the week on a negative note following a steep sell-off in the final hour of trading on Friday, May 29. The Sensex plunged nearly 1,300 points, falling 1,092 points or 1.44% to close at 74,775.74, while the Nifty 50 shed 359 points or 1.50% to settle at 23,547.75. Throughout most of the session, both indices traded in a narrow range as investors stayed on the sidelines amid uncertainty surrounding a potential US-Iran agreement. According to market experts, the Indian markets are likely to enter the upcoming week with heightened volatility and strong dependence on global developments. Technical analysts note that Nifty continues to trade below its 20-week and 50-week EMAs, with immediate resistance at 23,900 and 24,100 levels, while support is seen at 23,400 and 23,200. For the Sensex, immediate resistance is placed near the 75,800–76,000 zone, with support in the 74,500–74,200 region.
Among Sensex constituents, Coal India and ONGC emerged as the major losers during the trading session, while other stocks showed mixed performance. Asian equity markets traded on a mixed note, with South Korea's Kospi and Japan's Nikkei 225 trading higher, supported by global technology optimism, while China's Shanghai Composite and Hong Kong's Hang Seng remained under pressure. US markets had ended mostly higher overnight, with the Nasdaq Composite climbing 1.19 per cent and the S&P 500 advancing 0.61 per cent to fresh record levels, though the Dow Jones Industrial Average ended marginally lower. Market experts recommend a cautious yet selective approach given the prevailing backdrop of geopolitical uncertainty, elevated volatility, and mixed global macro signals. Sectorally, energy, commodities, and selective domestic-facing themes continue to display resilience, while caution is warranted in sectors vulnerable to global growth moderation and currency volatility.
