FX.co ★ Equities in India Under Pressure Amid Middle East Tensions and Trade Fears

The BSE Sensex declined by 813 points or 1.0%, reaching 80,614 on Friday morning and marking its second consecutive session of losses, while also hitting a five-week low due to heightened Middle East tensions. This was prompted by Israeli military actions against Iran, which unsettled investors. Similarly, the Nifty 50 suffered a 1% decline, continuing its downward trend. The market sentiment was further dampened by a downturn in U.S. futures following President Trump's renewed tariff threats. Additionally, he openly criticized Federal Reserve Chair Jerome Powell, labeling him a “numbskull,” in an effort to increase pressure for interest rate reductions. The downturn was widespread, particularly impacting sectors such as transport, logistics, and energy minerals. Airline stocks took a significant hit after an Air India crash in Ahmedabad on Thursday resulted in the tragic loss of nearly 242 lives. Interglobe Aviation's shares dropped nearly 4%, with SpiceJet also seeing a 2% decline. For the entire week, the Sensex seems poised for a 1.7% loss, following gains in the earlier period. Key decliners in this session included Bharat Petroleum, which fell by 3.0%, Adani Ports, down 2.1%, Reliance Industries, decreasing by 1.6%, and Bajaj Auto, which dropped by 1.4%.