- Indian markets opened lower, tracking global sell-off.
- US inflation, Mideast tensions spurred global market decline.
- Oil surged; escalating US-Iran conflict deepened market anxiety.
Indian benchmark indices opened sharply lower on Thursday morning, tracking a broad selloff in global markets. The BSE Sensex opened at around 73,500 points, down close to 400 points, while the NSE Nifty50 began trading at over 23,000, shedding around 120 points at the 9:15 AM bell.
The weakness at the open reflected a confluence of pressures, an overnight rout on Wall Street triggered by a hotter-than-expected US inflation print, and a fresh escalation in the US-Iran conflict that has pushed oil prices sharply higher and dented risk appetite globally.
GIFT Nifty Signals Weak Start
The GIFT Nifty had already flagged a downbeat open for Indian markets. The futures contract was quoted at 23,160, down 79 points, pointing to early losses for the Nifty50 when trade officially began.
The negative signal comes a day after Indian equities ended on an almost flat note. The Sensex had edged up 64 points while the Nifty had actually closed 27 points lower on Wednesday, with strength in FMCG and private banking stocks failing to counter weakness elsewhere on the board.
Pre-Open Session
Selling pressure was already visible well before the opening bell. In the pre-open session, around 9:01 AM, the Sensex was at 73,651.54, recording a fall of 331.64 points or 0.45 per cent. The Nifty was down 160.80 points, or 0.69 per cent, at 23,054.15 during the same window.
Asian Markets Under Pressure
The mood across the Asia-Pacific region was broadly negative on Thursday. Japan’s Nikkei 225 and South Korea’s Kospi were both in the red, declining 0.45 per cent and 0.28 per cent, respectively, at the time of reporting.
Regional markets came under pressure from two directions: the Wall Street selloff following a higher-than-anticipated US inflation number and the surge in oil prices triggered by fresh American military strikes on Iran.
Wall Street Ends Sharply Lower
All three major US indices closed deep in the red overnight, setting the tone for a risk-off Thursday across global markets.
The Dow Jones Industrial Average fell 1.87 per cent, shedding 953 points to close at 49,919. The S&P 500 finished 1.62 per cent lower, while the tech-heavy Nasdaq Composite posted the steepest decline among the three, settling down 1.98 per cent.
The Federal Reserve is broadly expected to keep interest rates unchanged at its June policy meeting. However, markets are now pricing in at least one 25-basis-point rate hike before the year ends, a shift in expectations that added to the selling pressure.
Geopolitical Watch: US-Iran Conflict Deepens
The US carried out fresh strikes on Iran, marking a further escalation in hostilities between the two countries. President Donald Trump said on Wednesday that Tehran had been given ample time to negotiate a deal but had chosen not to, adding that the US would now hit Iran “very hard.”
Iran responded by targeting US military bases in the Gulf region in retaliation for the latest American strikes. The exchange has significantly heightened tensions in one of the world’s most strategically sensitive regions, adding to investor anxiety.
Oil Surges On Hormuz Closure; Gold, Silver Slip
Oil prices climbed sharply as Iran announced the closure of the Strait of Hormuz, a critical chokepoint for global energy supply, following the latest round of US strikes. The Brent June futures contract rose 1.3 per cent to $94.38 per barrel on the Intercontinental Exchange, gaining more than $2 a barrel during the session.
Gold futures were trading 0.37 per cent lower while silver futures were down 0.97 per cent.
Key Cues To Track Through the Session
Market participants will be tracking several developments through the session: the trajectory of oil prices amid the Strait of Hormuz closure, any further escalation in the US-Iran conflict, and cues from the Federal Reserve’s June policy meeting, where rates are expected to be held steady. The movement of Asian peers and broader risk sentiment will also remain in focus as the day progresses.
