The Indian equity market is likely to open on a cautious note amid fresh escalation of tension in West Asia. Massive selling by FPIs and the weakening of the rupee continued to hurt market sentiment, analysts said.
Ponmudi R, CEO of Enrich Money, said Overall, investor sentiment remains cautious and highly sensitive to geopolitical developments. The prolonged U.S.–Iran standoff, the rebound in crude oil prices and continued foreign fund outflows continue to shape the near-term market narrative.
“While energy prices remain below their recent peaks, any further escalation in regional tensions or sustained foreign selling could weigh on risk appetite and increase downside risks. Conversely, meaningful progress on the diplomatic front would likely improve sentiment, support a recovery in risk assets and provide greater visibility for markets navigating an uncertain global backdrop.,” he added.
The A gift Nifty at 23,245 suggests Nifty may open with a gap down of over 200 points.
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