The Indian stock market is set to open lower on Wednesday after remaining closed on Tuesday on account of Holi. The domestic equity market is expected to track global markets, which extended their decline on Tuesday.
The US S&P was trading 1.78 percent below its previous close, Japan’s Nikkei shed over 3 percent, and Hong Kong’s Hang Seng declined more than 1 percent. Germany’s DAX plunged 3.77 percent during Tuesday’s trade as the US-Israel-Iran war rattled global markets and weakened business sentiment.
The South Korean benchmark Kospi fell 7.2 percent on Tuesday, posting its worst day since August 2024. European markets were sharply lower, with the Stoxx Europe 600 down 2.5 percent as of 2:30 pm IST.
GIFT Nifty, based in GIFT City in Gujarat’s Gandhinagar, was trading 2.38 percent lower at around 24,398.50 at 5:30 pm on Tuesday, compared with its previous close of 24,992.50 on Monday.
The index remained open as it operates on the NSE International Exchange and follows a different schedule to overlap with major global markets in Asia, Europe and the US.
The decline in GIFT Nifty is likely to be reflected in domestic benchmarks on Wednesday.
On Tuesday, Iran escalated attacks on US assets in West Asia, reportedly targeting the US embassy in Riyadh. It also threatened to shut down the Strait of Hormuz, adding pressure to energy markets.
A Qatar-based natural gas facility responsible for all of the country’s LNG exports has already been shut down.
Brent crude rose to $82.24 per barrel on Tuesday, while LNG prices crossed the $3 per MMBtu mark.
Higher crude oil prices are expected to pressure margins of Asian companies dependent on energy supplies from the Middle East.
With no respite in sight on the war front, Indian equity indices are expected to remain under pressure after declining nearly 1.3 percent in Monday’s trade.
