Indian Shares Set To Tumble Amid West Asia Crisis

(RTTNews) - Indian shares are seen opening deep in the red on Friday as investors weigh the potential impact of a stronger dollar and soaring oil prices on foreign fund flows, inflation and economic growth.

The dollar firmed and Treasury yields rose as the West Asia conflict escalated, resulting in a sharp spike in oil and gasoline prices and threatening to set off convulsions in the world economy.

As the U.S. and Israel continue military assault against Iran, the latter has launched a fresh wave of missile and drone strikes across the Gulf, with attacks reported in the United Arab Emirates, Bahrain, Qatar and Kuwait.

Brent crude, the global energy benchmark, climbed above $85 a barrel on Thursday as the situation across West Asia worsens.

U.S. crude futures jumped 8.5 percent to $81.01, its highest price since July 2024 and its biggest one-day jump since 2020 after Iran claimed it struck a U.S. oil tanker in the northern Persian Gulf.

As the situation unfolds at a rapid pace, investors are finding it hard to make a firm call on whether the war will last days, weeks, or longer.

Benchmark indexes Sensex and Nifty rose over 1 percent each on Thursday, largely due to short covering after recent steep losses.

The rupee appreciated by 55 paise to close at 91.60 against the dollar, supported by suspected central bank intervention and a recovery in domestic equity markets.

Foreign investors net sold shares worth Rs 3,753 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 5,153 crore, according to provisional exchange data.

Asian markets were broadly lower this morning as an energy crisis loomed and China set its lowest economic growth target in decades at a key meeting.

Gold held steady after falling in the previous session, while the dollar was set for its steeply weekly gain in a year.

Oil prices were poised for their biggest jump in three in a turbulent week for global markets.

U.S. stocks ended lower overnight as attacks in the Middle East spread to more countries and reports emerged that U.S. officials have written draft regulations that would restrict AI chip shipments to anywhere in the world without American approval.

U.S. Treasury yields rose for a fourth day in a row and oil spiked to its highest level since the summer of 2024, fueling inflation concerns and casting doubt on the prospect of immediate interest-rate cuts.

The Dow plunged 1.6 percent to reach its lowest closing level in well over two months while the S&P 500 shed 0.6 percent and the tech-heavy Nasdaq dipped 0.3 percent.

European stocks tumbled on Thursday after U.S. and Israeli airstrikes on Iran turned into a broader regional conflict, disrupting global supply energy chains.

The pan European Stoxx 600 lost 1.3 percent. The German DAX tumbled 1.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both fell around 1.5 percent.