Gift Nifty Points to Weak Open for Sensex, Nifty on Wednesday; US Strikes Iran, Markets Turn Risk-Off

Mumbai, Sept 2: Indian equity benchmarks are set to open lower on Wednesday, tracking weak overnight cues after the U.S. launched fresh airstrikes on Iran and Tehran struck back at American targets, marking the most serious escalation of the conflict in weeks. Gift Nifty futures were trading in the red early on Wednesday morning, pointing to a soft start for the Nifty and Sensex at 9:15 am. The negative bias comes as Asian markets slumped broadly, extending a rout on Wall Street where every major U.S. index ended sharply lower on Tuesday. With oil at a five-week high and Dalal Street already closing weaker on Tuesday despite strong GDP data, investors are bracing for a tough start. 

Gift Nifty Figures 

The near-month Gift Nifty futures contract, expiring September 29, was trading at 24,020.00 as of 8:23 am IST on Wednesday, down 32 points, or 0.13 per cent. That marks a further slide from Tuesday’s close of 24,051, when the contract had already settled 0.55 per cent lower. The extended weakness, on top of Tuesday’s sharp afternoon reversal, points to a continuation of the souring mood rather than overnight relief. If the discount holds, it would mark a third straight session of losses heading into Wednesday’s open. 

Iran War 

The U.S. launched a barrage of airstrikes on Iran on Tuesday, targeting Revolutionary Guard air-defence sites, radar systems and mine-laying capabilities, in the most serious escalation in weeks. Tehran struck back with missile and drone attacks on U.S. assets in Jordan, Bahrain and Iraq, even as Trump warned of a strike still to come at “a much harder and higher level.” Iran’s Red Crescent reported five killed and dozens wounded when a strike hit a wedding near Sirik on the Strait of Hormuz, while officials vowed to keep the strait shut to oil exports. The strikes followed a weekend exchange of fire and Monday’s attacks on tankers leaving the strait, which normally carries a fifth of the world’s oil. 

Asian Markets 

Asian markets fell broadly on Wednesday morning as the widening conflict rattled sentiment. Japan’s Nikkei 225 was the worst hit, tumbling 2.63 per cent to 64,473.16, while Hong Kong’s Hang Seng dropped 1.12 per cent and Australia’s ASX All Ordinaries fell 1.22 per cent. Malaysia’s KLCI declined 1.42 per cent and China’s Shanghai Composite slipped 1.04 per cent. Indonesia’s JSX Composite bucked the trend, up 1.14 per cent, but the broader mood stayed risk-off ahead of Wednesday’s Indian open. 

US Markets 

All the major U.S. indices ended sharply lower on Tuesday, with the Dow falling 0.79 per cent to 52,766.88, the S&P 500 down 0.71 per cent at 7,631.47, and the Nasdaq Composite dropping 1.03 per cent. The selloff came as the U.S. 10-year Treasury yield climbed to around 4.8 per cent, its highest since January 2025, as surging oil prices stoked inflation worries and strengthened bets on a Fed rate hike this month. Traders were pricing in over a 65 per cent chance of a September hike, up sharply from about a third before Fed Chair Kevin Warsh’s hawkish Jackson Hole remarks last week. 

Oil Prices 

Oil prices extended their rally, with global crude rising more than $4 a barrel on Tuesday to settle at a five-week high. WTI crude was last at $90.88 a barrel, up 0.73 per cent, while Brent crude climbed 0.95 per cent to $95.55, a fifth straight session of gains. Gulf-linked Murban crude was the standout mover, surging 7.82 per cent to $106.15. With Iran’s Revolutionary Guards warning that fresh strikes would “tighten the lock” on the Strait of Hormuz, traders are bracing for further volatility. 

Indian Markets on Tuesday 

Back home, the Sensex and Nifty ended marginally lower on Tuesday even after data showed India’s economy expanded 7.8 per cent year-on-year in the April-June quarter, beating estimates, with the Sensex slipping to 76,944.28 and the Nifty declining 24.60 points, or 0.10 per cent, to 24,055.80. Losses were led by Nifty Pharma, down 1.5 per cent, and Nifty Realty, down 1.4 per cent, while Nifty FMCG and Nifty IT bucked the trend, gaining 0.9 per cent each. Shriram Finance and Maruti Suzuki were among the biggest losers, while ITC and Bharti Airtel led the gainers, even as breadth stayed weak with more than 2,400 stocks declining against under 1,700 advancers. 

Sources

• nseindia.com
• OilPrice.com