Nifty Expected to Open Below 24,000 on Elevated Tensions in Middle East
Global Markets on High Alert as Tensions Escalate in Middle East
Global markets are bracing for a gap-down opening on May 5 as tensions in the Middle East continue to escalate. According to a report by Iran's Fars news agency on May 4, two missiles hit a US warship near Jask island, forcing warships to turn back after ignoring Iran warnings. This development comes on the heels of a naval mission, dubbed Project Freedom, announced by US President Donald Trump to guide stranded ships out of the Strait of Hormuz.
US and European Markets Take a Hit
US futures reversed early gains, while European stocks fell further into the red as tensions flared up in the Middle East. Contracts on the Nasdaq 100, Dow Jones, and S&P 500 fell up to 0.7%. Europe's benchmark Stoxx 600 index declined 1%, while Brent crude spiked more than 4% to above $112 a barrel. An index of the dollar rose.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Market Index | Percentage Change |
|---|---|
| Nasdaq 100 | -0.7% |
| Dow Jones | -0.7% |
| S&P 500 | -0.7% |
| Stoxx 600 | -1% |
Indian Equity Benchmarks Rise Amid Soft Oil Prices
Despite the global market volatility, Indian equity benchmarks rose on Monday, supported by softer oil prices, upbeat automaker sales data, and trends in state election results. However, losses in technology stocks and Kotak Mahindra Bank capped gains. The Nifty 50 added 0.51% to 24,119.30, and the BSE Sensex gained 0.46% to 77,269.40.
| Market Index | Percentage Change |
|---|---|
| Nifty 50 | +0.51% |
| BSE Sensex | +0.46% |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Sectoral Performance
Thirteen of 16 major sectors logged gains, with the broader small-caps and mid-caps adding 0.7% and 0.6%, respectively.
Investor Takeaway
Investors should be cautious and monitor global events that may impact market volatility.
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