The key domestic indices traded in narrow range with major losses in mid-morning trade, weighed down by negative global sentiment after Israel declared a state of emergency following strikes on Iranian nuclear and strategic sites. Traders largely ignored domestic data, shifting its focus to geopolitical developments.

Market participants moved toward safe-haven assets, while investors closely tracked trends in Brent crude oil prices. The Sensex hovered below 81,000 mark while the Nifty traded below the 24,700 level.

PSU Bank shares witnessed selling pressure for the fourth consecutive trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex, declined 770.73 points or 0.93% to 80,929.77. The Nifty 50 index fell 228.50 points or 0.92% to 24,661.55.

The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index slipped 0.46% and the S&P BSE Small-Cap index dropped 0.29%.

The market breadth was weak. On the BSE, 1,266 shares rose and 2,448 shares fell. A total of 176 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, up 7.56% to 15.08.

MCX Gold futures for 5 August 2025 settlement jumped 1.83% to Rs 100,195.

In the commodities, Brent crude for August 2025 settlement jumped $5.27 or 7.60% to $74.63 a barrel amid heightened geopolitical tensions

Economy:

India's Consumer Price Index (CPI)-based inflation eased to 2.82% in May 2025, down 34 basis points from April's 3.16%, marking the lowest reading since February 2019. A key driver of the decline was food inflation, which dropped to 0.99%, the lowest since October 2021, significantly below both April's 1.78%.

Buzzing Index:

The Nifty PSU Bank index fell 1.43% to 6,916.85. The index dropped 4.05% for the four consecutive trading sessions.

Canara Bank (down 3.88%), Union Bank of India (down 1.99%), Indian Overseas Bank (down 1.84%), State Bank of India (down 1.66%), Bank of India (down 1.5%), UCO Bank (down 1.23%), Punjab & Sind Bank (down 1.13%), Punjab National Bank (down 0.81%), Bank of Baroda (down 0.73%) and Central Bank of India (down 0.39%) declined.

Stock in Spotlight:

DCM Shriram shed 0.06%. The company said that its board has approved definitive agreements to be entered into for acquiring 100% equity share capital of Hindusthan Speciality Chemicals for a total consideration of Rs 375 crore.

Torrent Power rose 0.80%. The company said that its wholly owned subsidiary, Torrent Green Energy has been awarded a 300 MW wind power project by Solar Energy Corporation of India (SECI) under the Wind Tranche-XVIII.

Global Market:

US stock futures nosedived early Friday, with Dow Jones futures plunging 580 points, after media outlets reported that Israel had launched military strikes on Iran, specifically targeting its nuclear facilities. The reports emphasized that the US was not involved in the operation.

Israel's Defense Minister declared a nationwide state of emergency, saying, Following the State of Israel's preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future.

Asian shares mirrored the anxiety, trading deep in the red on Friday. Crude oil prices spiked in response to the escalating geopolitical tension.

Despite the looming volatility, US indices closed higher on Thursday. The S&P 500 rose 0.38%, while the Nasdaq Composite gained 0.24% and the Dow Jones Industrial Average added 0.24%.

In economic data, the Producer Price Index (PPI) for final demand rose 0.1% in May, recovering from a revised 0.2% drop in April, according to the Bureau of Labor Statistics.

Oracle soared to record highs after the company raised its full-year revenue growth outlook, citing strong AI-related demand.

Boeing tumbled after a tragic Air India 787-8 Dreamliner crash during takeoff in Ahmedabad. The aircraft was carrying 242 passengers. GE Aerospace, which supplies the jet's GEnx-1B engines, also saw its shares slide sharply.

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