- US-Iran tensions reignited; impacting global investor sentiment.
- Asian, US markets fell; oil, gold prices rose.
- Indian indices gained slightly; RBI policy decision awaited.
The Indian benchmark indices gained on Thursday as the Sensex rose over 13 points to settle at 74,360 and the Nifty increased more than 10 points to test 23,500 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks such as Titan, Eternal, ITC, TechMahindra and State Bank of India. Meanwhile, the laggards included stocks like Axis Bank, NTPC, TCS, Trent and PowerGrid.
In the broader markets, the Nifty India FPI index gained 0.86 per cent as volatility declined. Sectorally, the Nifty Media index rose 2.19 per cent and the Nifty Metal index tumbled 0.73 per cent.
US-Iran Tensions
Fresh geopolitical tensions between the United States and Iran weighed on global investor sentiment on Thursday, even as markets also turned their focus towards the Reserve Bank of India’s upcoming monetary policy decision.
Geopolitical concerns resurfaced after tensions between the United States and Iran intensified once again.
According to reports, Iran launched strikes targeting Kuwait International Airport early on Wednesday. The development came a day after US Central Command said it had intercepted multiple Iranian ballistic missiles and carried out defensive operations against targets on Qeshm Island in the Persian Gulf.
At the same time, diplomatic efforts continued.
US President Donald Trump said Iran had agreed not to acquire nuclear weapons, while Washington also indicated that Israel had agreed to a ceasefire arrangement with Lebanon provided Hezbollah halts its attacks.
Despite these diplomatic signals, the latest military developments have reignited concerns over regional stability and global energy supplies.
RBI Policy Decision Emerges As Key Domestic Trigger
While geopolitical developments continued to dominate headlines, investor focus at home increasingly shifted towards the RBI’s Monetary Policy Committee (MPC) meeting.
The central bank’s policy announcement on Friday is expected to be the most significant domestic event of the week.
Market participants are expected to closely analyse the RBI’s outlook on inflation, growth, liquidity conditions and interest rates amid evolving global uncertainties.
Any commentary on the impact of higher crude oil prices and external risks could influence market direction in the near term.
Asian Markets Trade Lower
Equity markets across the Asia-Pacific region traded lower on Thursday morning as investors reacted to the latest developments in West Asia.
Japan’s Nikkei 225 declined 1.67 per cent, while South Korea’s Kospi fell 1.63 per cent, reflecting broader risk-off sentiment across regional markets.
The renewed conflict has raised concerns about inflationary pressures and potential risks to global economic growth.
Wall Street Ends In Negative Territory
US markets also closed lower overnight.
The Dow Jones Industrial Average fell 1.21 per cent, while the S&P 500 declined 0.74 per cent. The technology-heavy Nasdaq Composite lost 0.89 per cent as investors assessed the impact of escalating geopolitical tensions and rising uncertainty.
Oil Prices Stay Elevated Amid Supply Concerns
Oil prices remained volatile as markets evaluated both the military escalation and ongoing diplomatic efforts.
Brent crude futures pared some earlier gains and traded around $96.72 per barrel in early Thursday trade.
While prices eased slightly, concerns about potential disruptions to energy supplies continued to keep crude prices elevated.
For India, sustained strength in oil prices remains a key risk due to its implications for inflation, the current account deficit and corporate profitability.
Gold Gains On Safe-Haven Demand
Safe-haven demand returned amid heightened uncertainty.
Gold futures rose nearly 0.6 per cent, while silver futures slipped marginally.
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The move reflected investors’ preference for defensive assets as geopolitical risks increased.
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