Markets to Open Flat-to-Firm on Iran De-escalation Hopes; Gift Nifty at 56 points Down 

Mumbai, May 19: Domestic equity markets are poised for a measured but positive open on Wednesday as a significant shift in geopolitical tone — U.S. President Donald Trump pausing a planned military strike on Iran and signaling a meaningful chance of a nuclear deal — provided a much-needed lift to global sentiment.  

Gift Nifty futures, often the earliest indicator of how Dalal Street will open, pointed to a soft but stable start. As of 8:05 am on Tuesday, the 26-May-2026 contract was trading at 23,654.50, slipping 56.50 points or 0.24% from its previous close. While the futures signal a marginally gap-down open, the underlying tone in markets remained cautiously constructive, supported by the prospect of de-escalation in the Middle East. 

Middle East Conflict 

The pivot in war rhetoric came after Trump announced on Monday that he had instructed the U.S. military to stand down from a planned attack on Iran following Tehran’s transmission of a peace proposal through Pakistan. Trump said there was a “very good chance” of reaching an agreement to prevent Iran from obtaining a nuclear weapon, adding that Gulf leaders from Qatar, Saudi Arabia and the UAE had urged him to hold off. The White House, however, stopped short of offering any details of the framework under discussion, and analysts cautioned that the situation remained fluid, with Trump warning that a “full, large-scale assault” remained an option if talks failed. 

Asian Markets 

Asian markets on Tuesday morning presented a mixed picture. Australian equities rose 0.82%, while the Hang Seng gained 0.48% and Vietnam’s HNX 30 advanced 0.86%. On the other side, Japan’s Nikkei 225 fell 0.64%, Indonesia’s Jakarta Composite dropped sharply by 1.85%, Pakistan’s KSE 100 shed 2.29%, and China’s Shanghai Composite eased 0.42%. 

US Markets 

Wall Street ended Monday on an uneven note. The Dow Jones Industrial Average rose 159.95 points or 0.32% to close at 49,686.12, while the NYSE Composite gained 0.44%. However, the Nasdaq Composite slipped 134.41 points or 0.51% to 26,090.73, and the S&P 500 edged lower by 0.07% to 7,403.05, reflecting caution in rate-sensitive technology names. 

Oil Prices Dip 

Oil prices retreated sharply in early Asian trade on Tuesday after Trump’s announcement. Brent crude for July delivery fell $3.01 or 2.7% to $109.09 a barrel, while WTI for June delivery dropped $1.38 or 1.3% to $107.28. The more active July WTI contract fell $2.06 or 2% to $102.32 per barrel, as traders priced in the possibility of easing supply disruption risk through the Strait of Hormuz. 

Monday Session

Back home, Indian benchmark indices closed nearly flat on Monday after a turbulent session marked by sharp early losses and a late recovery led by IT stocks. The BSE Sensex rose a modest 77.05 points or 0.10% to settle at 75,315.04, while the NSE Nifty 50 edged up just 6.45 points or 0.03% to close at 23,649.95. Despite the headline resilience, broader market breadth remained decisively negative, with 2,891 stocks declining against only 1,216 advances on the NSE. The Indian rupee’s slide to a fresh record low against the dollar, combined with a nearly 4.5% surge in India VIX, underscored the fragile investor confidence heading into Wednesday’s session. 

Source: nseindia.com