New Delhi, May 8 -- Renewed hostilities near the Strait of Hormuz sparked a choppy retreat in domestic equities, even as favourable state-election outcomes provided a brief cushion to markets this week. Benchmark indices fell about 0.6% on Friday amid a global risk-off mood, as Iran accused the US of breaching their ceasefire agreement, citing attacks on its oil tankers and air strikes on coastal areas.

But markets ultimately eked out marginal weekly gains, though the underlying sentiment remained fragile and directionless. The Nifty 50 rose 0.74% to close at 24,176.15 and the Sensex ended 0.54% higher at 77,328.19.

Experts warn that persistent geopolitical uncertainty, coupled with volatility in the rupee and crude oil prices, will con...