- Indian equities opened cautiously amid geopolitical uncertainty and mixed global signals.
- US-Iran tensions resurfaced after failed negotiations and a unilateral ceasefire extension.
- Global markets traded mixed; Asian stocks fell, US indices closed lower.
Indian equity benchmarks started Wednesday’s session on a cautious note, with mixed signals emerging in the pre-open trade amid renewed geopolitical uncertainty.
The BSE Sensex opened trading below 78,900, taking a hit of more than 350 points and the NSE Nifty50 rang the opening bell under 24,500, slipping almost 100 points, around 9:15 AM.
GIFT Nifty And Pre-Open Trading
Early indicators suggested a weak undertone for the markets, with GIFT Nifty hovering at 24,442, down 143 points. At around 9 AM, the Sensex was trading higher by 396.65 points, or 0.50 per cent, at 79,669.98. In contrast, the Nifty slipped 102.30 points, or 0.42 per cent, to 24,474.30, indicating a muted and volatile start to the day.
The decline reflects rising caution among investors after fresh developments in the US-Iran conflict dampened hopes of a near-term resolution.
US-Iran Tensions Back In Focus
Geopolitical concerns resurfaced after the latest round of negotiations between the United States and Iran failed to produce a concrete outcome.
Although Washington has announced an extension of the ongoing ceasefire, uncertainty persists as the move appears to be unilateral, with no clear confirmation of participation from Tehran.
Further adding to the uncertainty, scheduled talks between the two sides did not take place, with reports indicating that Iran declined to attend.
Meanwhile, the continued blockade in the Strait of Hormuz, a key global oil transit corridor, remains a critical concern for markets, given its implications for global energy supply.
Global Markets Trade Mixed
Asian markets were largely under pressure in early deals, mirroring the cautious sentiment.
Hong Kong’s Hang Seng dropped 1.11 per cent, while South Korea’s Kospi slipped 0.54 per cent. Japan’s Nikkei 225, however, bucked the trend and advanced 0.83 per cent.
Overnight in the US, key indices ended lower, with the S&P 500 declining 0.63 per cent, while the Nasdaq and Dow Jones also posted losses.
Oil Holds Near $100 Amid Supply Concerns
Crude oil prices remained elevated, hovering close to the $100 per barrel mark as uncertainty around the Strait of Hormuz persisted.
Brent crude edged lower by 0.45 per cent to $98.04 per barrel in Asian trade, but prices continue to stay well above pre-conflict levels, sustaining concerns around inflation and global growth.
Safe-Haven Demand Lifts Gold, Silver
Amid the uncertainty, investors turned to safe-haven assets. Gold futures rose 1.07 per cent, while silver climbed 1.54 per cent, reflecting a cautious market stance.
Previous Session: Markets Extended Gains
In the previous session on Tuesday, domestic markets had extended their rally for a third straight day, supported by easing crude prices and optimism around potential progress in US-Iran talks.
The Sensex had climbed 753.03 points to settle at 79,273.33, while the Nifty rose 211.75 points to close at 24,576.60.
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