Benchmark indices Sensex and Nifty are poised for a weak opening on Wednesday after a holiday, tracking losses in Gift Nifty and global markets amid escalating tensions.
Gift Nifty futures — a futures contract based on the Nifty 50 index traded in NSE International Exchange — was at 24,410 as of 7 PM on Tuesday, signalling a negative start for domestic equities on Wednesday. Nifty had closed at 24,865.70 on Monday.
Risk-off sentiment intensified after US-Israel strikes on Iran drove crude oil prices higher, raising concerns over energy supplies and inflation. Brent crude has climbed above $80 a barrel.
Asian markets declined, with South Korea’s Kospi plunging 7.2 per cent, while Japan’s Nikkei 225 dropped over 3 per cent. European markets were also sharply lower, with the Stoxx Europe 600 down 3 per cent, while Wall Street futures pointed to further weakness.
Ashish Gupta, CIO at Axis Mutual Fund, said geopolitical shocks typically dent sentiment temporarily, but Indian equities have historically shown resilience, with long-term investors benefiting from staying invested and using market declines for prudent accumulation.
