Nifty Index Climbs 0.3 Percent as Global Oil Prices Decline Sharply

Market Update: Global Oil Prices Fall Amid Escalating US-Iran Tensions

The GIFT Nifty index continued its upward trend on June 4, trading 0.3% higher in the evening, while Brent crude prices declined by over 3% to $94.49. This decline in oil prices can be attributed to a ceasefire deal between Israel and Lebanon, which has boosted hopes for a broader agreement to end the US-Israeli war with Iran and potentially reopen the Strait of Hormuz.

At 5:32 pm on June 4, the GIFT Nifty was trading 0.33% higher at 23,556.5. The benchmark BSE Sensex gained 0.02% to 74,360.01, while the broader NSE Nifty 50 index ended 0.05% up at 23,416.55. Despite these gains, investors remained cautious ahead of a high-stakes RBI meeting, with war-fuelled inflation risks high on policymakers' minds.

The current GIFT Nifty trend suggests that markets are likely to open in the green on June 5. Thirteen of the 16 major sectors logged gains on Thursday, with the broader small-caps and mid-caps rising 0.5% each. Heavyweight financials rose 0.3% in their second session of gains, while IT stocks lost 0.3%.

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Brent crude remained elevated near $96 a barrel, while Asian markets fell 1.9%. Escalating U.S.-Iran tensions sapped sentiment after Iran struck Kuwait's airport and the U.S. launched retaliatory strikes near the Strait of Hormuz, overshadowing a U.S.-brokered Israel-Lebanon ceasefire.

In the U.S., futures for the Nasdaq 100 dropped 1.2%, while those for the S&P 500 slipped 0.4%. Broadcom, which added around $150 billion in market value just this week, slumped 15% in US premarket trading after its forecast for artificial-intelligence semiconductor revenue in the current quarter fell short of expectations. However, Dow Jones Industrial Average futures are up 0.85%.