Gifty Nifty in red, Wall Street down 1 per cent after fresh US strikes on Iran

Taking cues from the escalated geopolitical concerns after fresh US strikes on Iran, Gifty Nifty futures on Thursday declined as much as 1 per cent to 23,676.50 at around 11:50 am, indicating a weak start for Indian equities when trading resumes on Friday.

The markets were shut for trading on Thursday due to Eid holiday.

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The Wall Street Jornnal was also down 1 per cent amid fresh escalation between the US and Iran.

Nasdaq futures declined 0.9 percent, S&P 500 futures slipped 0.41 percent and Dow Jones futures was down 0.21 percent, indicating a weak opening for US markets later in the day at 7 pm IST.

Asian shares decline

Asian markets also traded lower on Thursday as renewed geopolitical tensions following fresh US military action against Iran weighed on investor sentiment, while oil prices rebounded 4 per cent after sharp losses in the previous session.

In the equity markets, Japan’s Nikkei 225 declined over 1 per cent to 63,905, while South Korea’s KOSPI declined nearly 5 per cent to 7,841.01.

Hong Kong’s Hang Seng index dropped 2.37 per cent or 600 points to 24,727, while China’s Shanghai Composite index slipped 0.90 per cent or 36.95 points to 4,056.78.

The selling pressure came after the US military said its forces carried out what it described as defensive operations against Iranian targets after intercepting drones near the Strait of Hormuz.

Reports claim that US Central Command forces shot down four Iranian attack drones and struck a ground control station in Bandar Abbas that was allegedly preparing to launch another drone.

Meanwhile, crude oil prices rebounded sharply in early trade after recording sharp losses on Wednesday.

International benchmark Brent crude gained around 4.08 per cent to trade near USD 100 per barrel, while US benchmark West Texas Intermediate (WTI) crude rose more than 4 per cent to around USD 92.52 per barrel.