Stock market live updates today: BSE Sensex and Nifty50 are expected to see a negative start on Thursday as escalating US-Iran tensions drive crude oil prices higher. Iran announced the closure of the Strait of Hormuz, a critical global energy shipping route, following fresh US military strikes on Iranian targets. Crude prices jumped by more than $2 a barrel.
Market Sentiment and Key Updates
Foreign portfolio investors remained net sellers on Wednesday, offloading shares worth Rs 2,125 crore. Domestic institutional investors, however, provided support with net purchases of Rs 3,124 crore. The markets are stabilizing, with sentiment gradually improving as crude oil prices remain contained. Investor confidence has strengthened amid hopes of a resolution to the Israel-Iran conflict. Brent crude fell to ~$91/bbl, providing relief on the inflation front and supporting domestic consumption sentiment.
Nifty and Bank Nifty Outlook
Nifty witnessed a volatile trading session and, after registering an intraday high of 23,425, surrendered its early gains to close marginally lower by 0.12%. The decline was accompanied by weakness in the broader market, reflecting profit booking at higher levels. From a technical perspective, the index formed a long upper-shadow candle on the daily chart, indicating selling pressure near higher levels and reaffirming the resistance zone of 23,450–23,500.
Bank Nifty, after witnessing a strong rally in recent sessions, experienced profit booking at higher levels and formed a negative candle on the daily chart. Despite the pullback, the index continues to trade above its 20-day EMA, suggesting that the broader trend remains constructive. Technically, the index has formed a long upper-shadow Doji candle, indicating selling pressure near higher levels and some exhaustion in bullish momentum. However, the index continues to hold above the falling trendline breakout zone, which was breached earlier with a strong bullish candle. This suggests that the recent decline is largely a profit-booking move rather than a reversal of the prevailing trend.
Global Markets and Geopolitical Tensions
Asian equities retreated on Thursday as investors reacted to a sharp decline on Wall Street following stronger-than-anticipated US inflation data. Fresh US military action against Iran also pushed oil prices higher, adding to market unease. MSCI's broad Asia-Pacific index excluding Japan fell 0.9%, with South Korea's Kospi leading the decline after dropping 3%. S&P 500 e-mini futures were also lower by 0.3%.
Market sentiment deteriorated further after the US military confirmed a new wave of strikes on multiple targets in Iran on Wednesday. The operation came just hours after President Donald Trump warned of additional attacks if efforts to secure a peace agreement failed. In response, Iran announced the closure of the Strait of Hormuz. Following the developments, Brent crude advanced 2% to $94.93 per barrel during Asian trading hours.
Strategists believe that Asian markets which have posted the strongest gains over the past two months could remain under pressure, as investors reassess whether the lofty earnings growth expectations that fuelled the rally are sustainable. Rupal Agarwal, Asia Quant Strategist at Bernstein in Singapore, said elevated valuations combined with highly optimistic earnings assumptions have left markets such as South Korea, Taiwan and the broader Asian technology sector vulnerable. She noted that reducing exposure to these segments may be the most sensible approach at present, adding that any renewed escalation in geopolitical tensions could accelerate the ongoing pullback.
Crude Oil Prices Surge
Crude oil prices surged by more than $2 a barrel on Thursday after Iran announced the closure of the Strait of Hormuz, a vital global energy transit route, in response to fresh US military strikes. Brent crude futures advanced $2.30, or 2.47%, to $95.40 per barrel, while US West Texas Intermediate (WTI) crude gained $2.60, or 2.89%, to reach $92.63 per barrel. Earlier in the trading session, US crude had risen by more than $3.
Iran's highest joint military command declared that the Strait of Hormuz would be shut to oil tankers as well as commercial shipping vessels, warning that any ship attempting to pass through the waterway would be targeted. However, the US military said on Wednesday via X that commercial traffic was continuing to move through the strait in both directions. The US military also denied reports carried by Iranian state media that American naval vessels near the strategic waterway had come under missile and drone attacks, stating that no US warships had been struck.
According to US officials, additional military operations targeting multiple locations in Iran began at 5:15 p.m. EDT (21:15 GMT) on Wednesday. The strikes marked the latest escalation in a growing cycle of hostilities that threatens to undo a fragile ceasefire agreed upon in early April. The prolonged disruption around the Strait of Hormuz, a route that normally handles roughly one-fifth of global oil and gas shipments, has continued to keep energy markets on edge and crude prices elevated.
Wall Street and Asian Markets
A fresh wave of selling in artificial intelligence-linked stocks pushed US markets sharply lower on Wednesday, as investors continued to reassess valuations in a segment that had been among Wall Street's strongest performers. The S&P 500 declined 1.6%, marking its first consecutive losses in three weeks and erasing gains made since early May. The Dow Jones Industrial Average dropped 953 points, or 1.9%, while the Nasdaq Composite led the decline with a 2% fall.
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