Indian stock market: Both benchmark indices – Sensex and Nifty – closed at nearly 1% down on Friday, February 27, driven by persistent geopolitical tensions and a sharp spike in crude oil prices.
The Sensex tumbled 961 points, or 1.17%, to settle at 81,287.19, while the Nifty 50 slumped 318 points, or 1.25%, to close at 25,178.65. Broader markets also faced pressure, with the BSE 150 MidCap Index dropping 1.09% and the BSE 250 SmallCap Index falling 0.86%.
“Equity markets ended the week under notable pressure as persistent geopolitical tensions and weakness in technology stocks weighed on sentiment. After an initially positive start, benchmark indices traded lacklustre through the middle of the week. However, a sharp decline in the final session pushed bulls onto the back foot,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Stock Market Outlook next week
According to Manoranjan Sharma, Chief Economist at Infomerics Ratings, the simmering tensions between the United States, Israel, and Iran escalated sharply on February 28, 2026, significantly affecting global energy security and economic stability.
“Indian equity markets have already responded with risk-off sentiment. Benchmark indices are expected to open lower, accompanied by heightened volatility as investors reassess geopolitical and commodity-related risks. A short-term correction of approximately 1–1.5% is possible, with sectors such as automobiles, financials, and FMCG facing downward pressure. In contrast, IT companies and select export-oriented businesses may find relative support amid global risk aversion and a strengthening US dollar,” Sharma said.
Top 5 triggers for the Indian stock market
1] Israel-Iran War
Following a claim by US President Donald Trump, Iran’s state-run Islamic Republic News Agency reported that joint US-Israel strikes had killed Supreme Leader Ayatollah Ali Khamenei. However, Iranian authorities have not officially confirmed the report.
The United States and Israel launched a large-scale military operation against Iran on Saturday.
Two Israeli officials told The Associated Press that Khamenei’s death had been confirmed, though Tehran has yet to respond. Earlier, Iranian Foreign Minister Abbas Araghchi told NBC News that Khamenei and President Masoud Pezeshkian were alive “as far as I know.”
Trump described the operation as “already a success,” saying, “We’ve inflicted tremendous damage. It would take them years to rebuild.”
In retaliation, Iran launched missiles and drones toward Israel and targeted US military bases in Bahrain, Kuwait and Qatar. The US military said there were no American casualties, while Israel stated that many of the incoming missiles were intercepted.
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(This is a developing story)
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