Markets Set to Open Lower as Iran-US Diplomacy Stalls, Oil Stays Elevated 

Mumbai, June 2: equity markets are set to open lower-to-muted on Tuesday as deepening uncertainty over the US-Iran conflict continues to weigh on sentiment, with Tehran accusing Washington of constantly shifting its position and putting forward contradictory demands during ceasefire negotiations. Iran’s foreign ministry spokesperson Esmaeil Baghaei said talks were being conducted amid severe suspicion and mistrust, and further complicated the outlook by linking any final agreement to a halt in Israeli attacks on Lebanon — including fresh strikes ordered by Prime Minister Benjamin Netanyahu on Beirut’s southern suburbs.  

Gift Nifty 

Gift Nifty futures for the June 30, 2026 contract were trading at 23,242.50 at 7:44 am on Tuesday, down 199 points or 0.85% from the previous close. The decline in Gift Nifty signals a gap-down open for the Nifty 50, which had settled at 23,382.60 on Monday. If the discount holds through the opening bell, Nifty could slip closer to the 23,200 level at open, extending what is already a four-session losing streak. 

Asian Markets on Tuesday Morning 

Asian markets were trading on a mixed-to-negative note on Tuesday morning, reflecting the overhang of geopolitical risk and softening global risk appetite. Japan’s Nikkei 225 led losses, falling 1.84% to 65,704.91, while the KSE 100 in Pakistan dropped 1.93% — among the sharpest declines in the region. Hong Kong’s Hang Seng offered a rare bright spot, gaining 0.50% to 25,524, while the HNX 30 in Vietnam edged up 0.27%. Broader regional indices including Indonesia’s JKSE and Thailand’s SET were marginally lower, underscoring the cautious tone that has settled across Asian trading floors since oil prices surged. 

US Markets 

Wall Street closed on a broadly positive note on Monday, cushioning some of the overnight concern. The Dow Jones Industrial Average added 46.42 points or 0.09% to close at 51,078.88, while the Nasdaq Composite gained 0.42% to finish at 27,086.81, driven by continued strength in technology stocks. The S&P 500 rose 0.26% to settle at 7,599.96 and the NYSE Composite added 0.18% to 23,335.16, reflecting selective buying even as geopolitical uncertainty kept gains in check. 

Oil Prices 

Oil prices held near elevated levels in early Asian trade on Tuesday, with Brent crude futures edging up marginally to $95.04 a barrel, while US West Texas Intermediate dipped slightly to $91.99. Both benchmarks had surged more than 5% in the previous session on fears that the Strait of Hormuz could remain closed, before paring gains after US President Donald Trump said talks with Iran were continuing and that he expected a deal to reopen the waterway within a week. The conflicting signals — Iran saying negotiations were suspended while Trump said they were ongoing — left crude traders reluctant to price in a full resolution, keeping oil sticky near multi-month highs. 

Monday Session of Indian Markets 

Indian benchmark indices ended lower for a fourth consecutive session on Monday, with the Sensex closing down 508.40 points or 0.68% at 74,267.34 and the Nifty 50 falling 165.15 points or 0.70% to settle at 23,382.60. Rising crude oil prices, driven by Middle East tensions, and forecasts of a weak monsoon season combined to weigh on broader market sentiment, even as information technology stocks posted sharp gains. Market breadth was firmly negative, with 2,665 stocks declining against 1,505 advances on the NSE, and 180 shares ending unchanged. 

Source:

• nseindia.com