Nifty Falls Over 1% Amid Reports of Airstrikes on Iran's South Pars Natural Gas Field

Global Markets React to Geopolitical Tensions

GIFT Nifty declined 1.11% or 264 points on Wednesday, closing at 23,536, below the 23,600 level. The decline was triggered by Iran's state television reporting that US and Israeli airstrikes had hit its South Pars gas field and nearby infrastructure, as well as oil and petrochemical facilities in Asaluyeh.

Brent crude prices rose nearly 2% to trade near USD 105 per barrel, up from a dip of 0.10% to USD 103.3 per barrel earlier in the day. The increase in oil prices followed Iran's report that some of its energy facilities had come under attack.

Global Market Outlook

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Domestic markets are expected to open lower on Thursday, following three consecutive sessions of gains, as geopolitical tensions remain elevated. Iran has vowed retaliation after attacks led to the death of its security chief Ali Larijani, while US President Donald Trump suggested that countries relying on the Strait of Hormuz should secure the route after the US "finishes off" Iran.

Market Performance

On Wednesday, benchmark indices Sensex and Nifty settled nearly 1% higher, extending gains for a third straight session. The Sensex rose 633.29 points, or 0.83% to close at 76,704.13, while the Nifty advanced 196.65 points, or 0.83% to settle at 23,777.80.

Wall Street Outlook

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Wall Street futures turned red, indicating a subdued start for the US markets. Iraq is set to resume exports through a pipeline linking the Kurdistan region to Turkey's Mediterranean port of Ceyhan, though the route can handle only a limited share of its output.