Sensex, Nifty, Likely to Open Lower Thursday as Iran-US Conflict Rattles Global Sentiment; Gift Nifty Down 76.50 Points

Mumbai, June 11: Domestic equity markets are likely to open down on Thursday tracking weak Asian cues and following a massive overnight selloff on Wall Street after US president Donald Trump ordered fresh air strikes against Iran in the Persian Gulf region. 

Gift Nifty futures were trading at 23,064.00, down 76.50 points or 0.33% as of 07:44 am on June 11, signalling a subdued start for the NSE Nifty 50, which had closed at 23,214.95 on Wednesday. The discount at which Gift Nifty is trading relative to the previous Nifty close suggests selling pressure at the open, in line with the broader risk-off mood across global markets. 

Middle East Conflict 

In short overnight US launched fresh air strikes at multiple Iranian targets following Iran’s retaliation attacks on Iraqi bases housing US military troops earlier this week. Iran’s Islamic Revolutionary Guard Corps announced counter-strikes on “18 targets at American military bases located in Kuwait and Bahrain.” Iran’s top joint military command also warned it would “shoot down any vessel that attempts to transit the Strait of Hormuz.” 

Asian & US Markets 

Asian markets were trading mixed with a negative bias on Thursday morning with investor risk sentiment taking another hit as Iran-US geopolitical tensions escalated overnight.  

Meanwhile US equity markets on Wall Street ended sharply lower Wednesday as investors reacted negatively to the fresh round of Iran-US military tensions. The Dow Jones Industrial Average ended down 1.87% to 49,918.78. The S&P 500 ended lower by 1.62% to 7,266.99. The Nasdaq Composite ended down 1.98% to 25,169.50. The NYSE Composite closed down 1.28% to 23,080.83. 

Oil Prices 

Oil prices climbed sharply on Thursday after Iran declared the Strait of Hormuz closed to all vessels, including oil tankers and commercial ships, threatening to disrupt roughly a fifth of global oil and gas shipments. Brent crude futures rose $2.30, or 2.47%, to $95.40 a barrel, while US West Texas Intermediate advanced $2.60, or 2.89%, to $92.63. Iran’s months-long partial blockade of the strait has kept crude prices elevated, and Thursday’s formal closure announcement drove further gains. 

Indian Markets Closing on Wednesday 

Indian benchmark indices ended little changed on Wednesday, with the BSE Sensex rising 64.42 points, or 0.09%, to close at 73,983.18, while the NSE Nifty 50 slipped 27.15 points, or 0.12%, to settle at 23,214.95. Market breadth, however, was sharply negative, with 2,653 stocks declining against 1,383 advances on the NSE, pointing to widespread selling pressure beneath the surface. 

Source

• nseindia.com