Trump’s Iran Conflict Signal Supports Global Markets, Can Sensex & Nifty Stop Falling? 5 Triggers to Track

Mumbai: Global markets received some relief after US President Donald Trump suggested that the conflict between the United States and Iran may be nearing its final phase. His remarks improved global sentiment and could support the Indian stock market on Tuesday.

The development comes after a sharp fall in Indian equities on Monday. The Sensex dropped 1,352.74 points, or 1.71 percent, to close at 77,566.16. Meanwhile, the Nifty 50 index declined 422.41 points, or 1.73 percent, ending the session at 24,028.05.

Investors are now watching global cues closely to see whether the market decline may slow down.

Sharp Fall in Crude Oil Prices

One of the biggest triggers for markets is the sharp fall in crude oil prices after Trump’s comments.

Brent crude prices fell 7.39 percent to USD 91.65 per barrel. Just a day earlier, prices had surged to around USD 119.50 per barrel due to rising tensions in the Middle East.

Similarly, US West Texas Intermediate (WTI) crude futures declined 6.86 percent to USD 88.27 per barrel. Lower oil prices are generally positive for India as the country imports a large portion of its energy needs.

Gift Nifty Signals Positive Opening

Early market indicators suggest a positive start for Indian equities. On Tuesday morning, GIFT Nifty was trading higher by 267 points at around 24,390 on the NSE International Exchange.

This indicates that the domestic markets could open with a gap-up, reflecting improved global sentiment.

Asian Markets Trade Higher

Most Asian markets were trading in positive territory on Tuesday.

Japan’s Nikkei index rose about 1.66 percent, while the broader Topix index gained around 1.3 percent. South Korea’s Kospi jumped nearly 6 percent, and the Kosdaq index advanced about 4 percent.

However, Hong Kong’s Hang Seng futures indicated a weaker opening compared to other Asian markets.

US Markets Recover Strongly

US stock markets also ended higher after Trump’s comments about the Middle East conflict. Wall Street showed strong recovery during the final hour of trading.

The Dow Jones Industrial Average gained 239.25 points, or 0.50 percent, closing at 47,740.80. The S&P 500 rose 55.97 points, or 0.83 percent, to settle at 6,795.99.

Meanwhile, the Nasdaq Composite climbed 308.27 points, or 1.38 percent, ending at 22,695.95.

Trump’s Comments on Iran Conflict

Trump said that the ongoing military operation in the Middle East is largely complete. He suggested that the conflict may soon come to an end.

However, he also warned that the United States could intensify military action if Iran disrupts global energy supply, particularly through the Strait of Hormuz.

What Investors Should Do?

Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd, advised investors to remain cautious.

He said that due to the current global situation and the weekly market expiry, investors should focus only on selected stocks and follow strict risk management until market stability returns.