Indian Stock Market Indices Expected to Open Lower Amid Elevated US-Iran Tensions

Financial Markets Update

Global Markets

The global equity market is poised for a weak start, driven by a sharp decline in Gifty Nifty and global markets amid escalating tensions in West Asia. The domestic markets were closed on Tuesday due to the Holi holiday.

Domestic Markets

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The Gifty Nifty futures are trading at 24,399, down 593.5 points or 2.37%, indicating a negative start for domestic equities. The decline follows a risk-off sentiment across global markets after US-Israel strikes on Iran pushed crude oil prices sharply higher, raising concerns over energy supplies and inflationary pressures.

Global Equity Indices

• Kospi: Plunged 7.2% in its worst session since August 2024.
• Nikkei 225: Fell over 3%.
• Hang Seng index: Dropped more than 1%.
• SSE Composite index: Slipped over 1%.
• Stoxx Europe 600: Down 2.5% as of 2:30 pm IST.
• Wall Street futures: Dropped up to 2%, pointing to a weak start for US markets later in the day.

Energy Markets

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• Brent crude: Rose past USD 80 per barrel after surging more than 7% on Monday.
• US President Donald Trump: Sought to justify a broad, open-ended military campaign on Iran, stating that the operation was ahead of expectations.

Impact on Indian Markets

The spike in crude prices has raised concerns about higher input costs for Asian companies and potential pressure on profit margins. The Sensex plunged 2,743.46 points or 3.37% to 78,543.73 in early trade on Monday, before settling at 80,238.85, down 1,048.34 points or 1.29%. The Nifty tumbled 575.15 points or 2.28% to 24,603.50 during the day, before closing 312.95 points or 1.24% lower at 24,865.70.