India’s benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, tracking sharp losses in overnight global markets amid the escalating US–Iran war and uncertainty surrounding a potential peace deal.

Asian markets slumped, while the US stock market closed sharply lower overnight, with the Nasdaq dropping more than 2% and entering correction territory.

The Indian stock market remained closed on Thursday, March 26, 2026, on account of Ram Navami.

However, on Wednesday, the Indian stock market ended with strong gains, extending its rally for the second consecutive session.

Domestic Market Recap

On Wednesday, Indian indices closed green:

• Sensex soared by 1,205.00 points (1.63%) to close at 75,273.45
• Nifty 50 moved up by 394.05 points (1.72%) to settle at 23,306.45

Gift Nifty

Gift Nifty was trading near 23,116, around 184 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Thursday, with the Nasdaq entering correction territory, as escalating tensions in the US–Iran war unsettled investors.

• The Dow Jones Industrial Average slumped by 469.38 points (1.01%) to close at 45,960.11.
• S&P 500 down by 114.74 points (1.74%), ending at 6,477.16.
• The Nasdaq Composite was lower by 521.74 points (2.38%), finishing at 21,408.08.

Crude Oil Prices

• Brent crude slipped by 0.76% to $107.19/barrel
• US West Texas Intermediate (WTI) crude was trading 0.43% lower at $94.07/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: Donald Trump said the US will pause attacks on Iran’s energy infrastructure for 10 days following a request from Tehran, adding that ongoing talks with Iran are progressing “very well.” However, an Iranian official rejected Washington’s proposal to end the conflict, calling it “one-sided and unfair.”
2. Japanese Bond Yields: Japanese government bond yields moved higher, with the five-year yield hitting a record high after rising 3 basis points to 1.770%. The benchmark 10-year yield also increased by 3 bps to 2.300%, while the two-year yield climbed 1.5 bps to 1.35%, after reaching a near three-decade high in the previous session.
3. Goldman Sachs Downgrades Indian Equities: Goldman Sachs downgraded Indian equities to ‘marketweight’ from ‘overweight’ due to weakening macroeconomic conditions and slower earnings growth, citing less attractive risk-reward compared to North Asian markets. The firm also cut its Nifty 50 12-month target to 25,900 from 29,300, implying a potential 13% return, based on projected earnings growth of 8% in CY26 and 13% in FY27, with a target price-to-earnings multiple of 19.5x.
4. China Industrial Profits: China reported a 15.2% rise in industrial profits during the first two months of the year compared to the same period last year, marking a sharp acceleration from the 0.6% growth recorded for the entire previous year. These figures cover industrial firms with annual revenue of at least 20 million yuan ($2.90 million) from their core operations.

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