Market Turmoil: Black Friday for Indian Stocks Amid Middle East Tensions

On Friday morning, Indian stock markets experienced a dramatic downturn, which analysts are calling a 'Black Friday' for investors. This sharp decline was triggered by escalating geopolitical tensions in the Middle East, as both the Nifty 50 and BSE Sensex indices opened deep in the red.

The market plunge followed Israel's military strike on Iranian targets, heightening fears of a wider regional conflict. In response, the U.S. condemned Israel's actions as a unilateral military move and cautioned Iran against retaliatory actions targeting U.S. assets in the area.

Global markets echoed India's panic, with significant losses in U.S. futures and major Asian indices as well. Experts like Ajay Bagga have noted the volatility, warning of disruptions in oil supply routes if Iran retaliates by blocking the Persian Gulf, further influencing global oil prices and triggering a risk-off scenario across markets.

In India's stock exchange, broad sectoral declines were recorded as the fallout spread, with Nifty Auto, IT, and Media, among others, facing heavy sell-offs. Broader indices, including Nifty Midcap and Smallcap, also reflected this downward trend, exacerbated by already tense international relations.

Meanwhile, aviation stocks felt the strain, notably after an Air India crash in Ahmedabad, with airline shares such as Indigo and SpiceJet plummeting. Analysts suggest short-term market turbulence due to geopolitical events is common, but recovery might be swift if tensions do not escalate further.

Despite this, the potential for ongoing conflict and disrupted oil supplies looms large, suggesting market instability may persist into the weekend and beyond, posing challenges for investors globally.

(With inputs from agencies.)