Markets to Open on Weak Note; Gift Nifty at 24,051 as Middle East Peace Hopes Evaporate Overnight

Mumbai, May 11: Indian equity markets are set to open sharply lower on Monday, with sentiment taking a fresh hit after US President Donald Trump dismissed Iran’s response to a Washington-drafted peace proposal as “totally unacceptable,” dashing hopes of an imminent resolution to the 10-week-old conflict and keeping the Strait of Hormuz effectively paralysed for global shipping. The rejection, posted bluntly on Truth Social over the weekend, has reignited fears of a prolonged Middle East standoff, sending oil prices surging and putting risk assets under renewed pressure across global markets heading into the new week.

Gift Nifty

Gift Nifty futures were trading at 24,051 as of 7:59 am on May 11, 2026, down 208.50 points or 0.86 per cent, pointing to a gap-down opening for the Nifty 50 when Indian markets resume trade. The reading suggests the benchmark could open around the 24,050 level, well below Friday’s close of 24,176.15, extending the previous week’s losses and reflecting the sharp deterioration in geopolitical sentiment over the weekend.

Middle East Conflict 

Iran on Sunday released a response to the US peace proposal that focused on ending the war on all fronts — including Lebanon, where US ally Israel is fighting Iran-backed Hezbollah — while also demanding compensation for war damages and emphasising Iranian sovereignty over the Strait of Hormuz. Tehran additionally called on Washington to end its naval blockade, guarantee no further attacks, lift sanctions, and end the US ban on Iranian oil sales. Trump swiftly rejected these terms, writing on Truth Social that he found the proposal “totally unacceptable,” without elaborating further. Attention now shifts to Trump’s scheduled visit to Beijing on Wednesday, where he is expected to discuss Iran with Chinese President Xi Jinping, with markets hoping China can leverage its influence over Tehran to push for a comprehensive ceasefire.

Asian Markets

Asian markets were broadly lower on Monday morning, weighed down by the collapsed peace hopes and surging oil prices. Indonesia’s JSX Composite was the steepest loser, falling 2.86 per cent to 6,969.40, while Malaysia’s FTSE Bursa KLCI declined 0.61 per cent to 1,748.11 and Hong Kong’s Hang Seng slipped 0.43 per cent to 26,280.08. Shanghai’s composite bucked the trend, rising 0.74 per cent to 4,210.74, while Japan’s Nikkei 225 fell a relatively contained 0.36 per cent to 62,488.26.

US Markets

US markets ended Friday’s session on a mixed note, with the Nasdaq Composite surging 1.71 per cent to 26,247.08 and the S&P 500 gaining 0.84 per cent to 7,398.93, while the Dow Jones Industrial Average ended barely changed, up just 0.02 per cent to 49,609.16. The NYSE Composite declined 0.30 per cent to 22,942.15, reflecting divergence between technology-driven gains and broader market caution.

Oil Prices

Oil prices jumped sharply on Monday, with Brent crude rising $3.18 or 3.14 per cent to $104.47 a barrel and West Texas Intermediate climbing $3.09 or 3.24 per cent to $98.51, as Trump’s rejection of Iran’s peace terms kept the Strait of Hormuz effectively closed to normal shipping traffic.

Friday Session

Indian markets had ended sharply lower on Friday, with the Sensex falling 516.33 points or 0.66 per cent to settle at 77,328.19 and the Nifty 50 shedding 150.50 points or 0.62 per cent to close at 24,176.15, as banking and PSU stocks led the decline. The PSU Bank index tumbled nearly 3 per cent, with State Bank of India, HDFC Bank, Bajaj Finance, and Axis Bank among the top drags on the benchmark, as elevated crude oil prices triggered fears of inflationary pressures and complicated the interest rate outlook. 

Source:

• nseindia.com