Indian equity benchmarks made gap-down opening and were trading under pressure in early deals on Friday tracking weakness in global markets as traders remain concerned about the economic impact of the expanding conflict in the Middle East, with crude oil prices spiking to above $81 a barrel amid ongoing supply disruption. Iran claimed that it has struck a U.S. oil tanker in the northern Persian Gulf, raising fears of a wider conflict after the Islamic republic threatened to halt shipping through the vital Strait of Hormuz. Besides, Global Trade Research Initiative (GTRI) has said that prolonged disruptions to shipping through the Strait of Hormuz beyond a week could rapidly spill over from energy markets to India’s fertiliser supplies, industrial inputs, construction materials and export sectors such as diamonds. Sentiments also remained subdued amid continued outflows by foreign institutional investors (FIIs), as FIIs net sold equities worth nearly Rs 3,752.52 crore on Thursday.

The BSE Sensex is currently trading at 79687.98, down by 327.92 points or 0.41% after trading in a range of 79443.47 and 79753.03. There were 9 stocks advancing against 21 stocks declining on the index.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.64%, Power up by 1.42%, Utilities up by 1.23%, IT up by 1.18% and Industrials up by 0.73%, while Bankex down by 0.80%, Realty down by 0.47%, Auto down by 0.46%, Oil & Gas down by 0.23% and Consumer Discretionary down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.11%, Reliance Industries up by 1.74%, NTPC up by 1.69%, HCL Technologies up by 1.20% and Tech Mahindra up by 1.14%. On the flip side, ICICI Bank down by 2.30%, Interglobe Aviation down by 2.22%, Larsen & Toubro down by 1.70%, Ultratech Cement down by 1.31% and HDFC Bank down by 1.25% were the top losers.

Meanwhile, expressing concerns over ongoing conflict between Iran and US-Israel, think tank the Global Trade Research Initiative (GTRI) has said that this is likely to impact the movement of goods between India and West Asia. It noted that prolonged disruptions to shipping through the Strait of Hormuz beyond a week could rapidly spill over from energy markets to fertiliser supplies, industrial inputs, construction materials and export sectors such as diamonds. The Strait of Hormuz is a narrow channel located between Iran and Oman that links the Persian Gulf to the Arabian Sea. Spanning roughly 55 kilometres at its narrowest point, it is regarded as one of the most vital and heavily used maritime routes globally, particularly for the energy trade. A large portion of the world's oil and liquefied natural gas shipments transits through this passage, making it a strategically crucial corridor for global shipping and energy supplies.

Following the joint attack by the US and Israel on Iran, the Islamic nation has announced the closure of the Strait. Iran is also targeting West Asian nations, including Qatar, the UAE and Saudi Arabia. In 2025, India imported $98.7 billion worth of goods from West Asia, making the region a crucial supplier for energy, fertilisers and industrial raw materials. GTRI Founder Ajay Srivastava said the largest share was crude oil with India imported about $70 billion worth of petroleum crude and products from West Asia in 2025. The region includes the six Gulf Cooperation Council countries Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) along with other regional economies such as Iran, Iraq, Israel, Jordan, Lebanon, Syria and Yemen.

He further said India has about 30 days of stocks, any prolonged disruption in shipments could quickly push up fuel prices, raising transport and logistics costs and feeding into inflation. Farmers would also feel the pressure through higher diesel prices for irrigation pumps and tractors. He added that natural gas supplies face similar risks. According to the GTRI, in 2025, India imported $9.2 billion worth of liquefied natural gas (LNG) from West Asia, accounting for 68.4 per cent of its LNG imports. Similarly, India imported $13.9 billion worth of LPG from West Asia in 2025, representing 46.9 per cent of its LPG imports. It remains the primary cooking fuel for millions of households. With stocks covering roughly two weeks of consumption, any disruption could quickly affect cooking fuel availability.

He also said that the effects of the conflict could also reach India's farm sector through fertiliser supplies. Last year, India imported $3.7 billion worth of fertilisers from West Asia. This included $2.2 billion of mixed fertilisers (NPK), accounting for 31.1 per cent of imports, and $1.5 billion of nitrogen fertilisers, representing 30.3 per cent of imports. He said fertilisers are essential for crop yields across cereals, fruits and vegetables. Supply disruptions during the crop season could reduce fertiliser availability, increase government subsidy costs and push up food prices. He added that India's diamond export industry also depends on Gulf supplies. In 2025, the country imported $6.8 billion worth of rough diamonds from West Asia, accounting for 40.6 per cent of imports.

The CNX Nifty is currently trading at 24678.85, down by 87.05 points or 0.35% after trading in a range of 24587.15 and 24700.90. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 2.28%, NTPC up by 1.89%, Reliance Industries up by 1.86%, Wipro up by 1.51% and Tech Mahindra up by 1.19%. On the flip side, Interglobe Aviation down by 2.24%, ICICI Bank down by 1.94%, Larsen & Toubro down by 1.85%, Max Healthcare down by 1.66% and HDFC Life Insurance down by 1.30% were the top losers.

Asian markets were trading mixed; Jakarta Composite slipped 178.64 points or 2.32% to 7,531.90, Taiwan Weighted lost 86.61 points or 0.26% to 33,586.33, KOSPI dropped 65.77 points or 1.18% to 5,518.13 and Straits Times fell 1.17 points or 0.02% to 4,845.39. On the other hand, Hang Seng syrged 449.66 points or 1.74% to 25,771.00, Nikkei 225 rose 163.94 points or 0.30% to 55,442.00 and Shanghai Composite was up by 10.11 points or 0.25% to 4,118.68.