Markets Set For Strong Open On Wednesday As Trump Pauses Hormuz Operation 

Mumbai, May 6: Indian equity markets are poised for a firm start on Wednesday, buoyed by a significant diplomatic development out of Washington — US President Donald Trump announced late Tuesday that he would briefly pause an operation to escort ships through the Strait of Hormuz, signalling that a comprehensive agreement with Iran may be within reach. The news lifted risk sentiment sharply across global markets, with Asian indices trading broadly higher and oil prices pulling back for a second consecutive session, easing a key source of inflationary pressure that had been weighing on domestic equities. 

Gift Nifty 

Gift Nifty futures were trading at 24,277 as of 8:04 am on May 6, up 78 points or 0.32% from the previous close, pointing to a gap-up opening for the Nifty 50 on the NSE. The Gift Nifty contract being tracked is the May 26, 2026 expiry. If the early momentum holds into the opening bell, Nifty could attempt a move back toward the 24,300–24,350 zone, recovering a portion of Tuesday’s losses when the index had struggled to hold the 24,000 mark. 

Iran — Hormuz Update 

US President Donald Trump announced on Tuesday that he would pause “Project Freedom” — the operation to escort stranded tankers through the Strait of Hormuz — citing “great progress” toward a finalised peace deal with Iran. Trump wrote on social media that both sides had mutually agreed the blockade would remain in place but the escort operation would be paused to allow negotiations to be concluded and a potential agreement signed. The Strait of Hormuz has been virtually shut since the conflict erupted, blocking roughly 20% of global oil supplies and triggering a significant energy crisis across importing nations. There was no immediate reaction from Tehran as of early Wednesday morning, and the White House had not clarified how long the pause would last or what specific concessions had been made. 

Asian Markets 

Asian markets greeted the diplomatic breakthrough with broad-based optimism on Wednesday morning, with most major indices trading in positive territory. Australia’s S&P ASX All Ordinaries led regional gains, rising 1.15% to 9,005.50, while Indonesia’s JSX Composite advanced 1.22% and Shanghai’s SE Composite climbed 1.10% to 4,157.25. Japan’s Nikkei 225 gained 0.38% to 59,513.12, Malaysia’s KLCI rose 0.40%, South Korea’s KSE 100 added 0.48% to 164,742.47, and the Philippine PSEI climbed 0.73% to 5,940.92. The Hang Seng Index in Hong Kong also traded higher, up 0.60% to 26,055.22, while Vietnam’s HNX 30 was the lone regional outlier, dipping 0.47%. 

US Markets 

All major US equity indices ended firmly in the green on Tuesday, reflecting improved risk appetite following Trump’s signals of a potential Iran deal. The Dow Jones Industrial Average rose 0.73% to close at 49,298.25, the S&P 500 gained 0.81% to 7,259.22, and the Nasdaq Composite advanced 1.03% to 25,326.13. The NYSE Composite also closed higher at 23,008.67, up 0.50%, while Mexico’s S&P/BMV IPC was among the strongest performers in the Americas, surging 1.94% to 68,590.57. 

Oil Prices 

Crude oil prices fell for a second straight session on Wednesday as expectations grew that supply blocked in the Middle East could soon resume flowing. Brent crude futures for July dropped $1.52 or 1.38% to $108.35 per barrel in early Asian trade, after tumbling 4% in the previous session, while US West Texas Intermediate futures for June declined $1.50 or 1.47% to $100.77 per barrel. Earlier on Tuesday, US crude had broken below the closely watched $100-per-barrel threshold after Trump’s announcement, a significant psychological and market milestone given that prices had soared well above that level since the conflict began two months ago. 

Tuesday’s Close: Sensex, Nifty 

Indian equity benchmarks ended on a weak note in a volatile session on Tuesday, with the Sensex declining 251.6 points or 0.33% to close at 77,017.8 and the Nifty 50 falling 86 points or 0.36% to settle at 24,033 — just managing to hold above the psychologically significant 24,000 level. Markets opened under pressure from negative global cues and surging crude prices, with the Nifty briefly dipping below 24,000 in early trade before recovering marginally. Market breadth was slightly negative on the day, with approximately 1,890 shares advancing against 2,110 declining and 169 remaining unchanged on the broader market.