Gift Nifty Falls 2% After Fresh US-Iran Strikes; Signals Gap-Down Opening For Sensex & Nifty50

Gift Nifty 50 index futures fell nearly 2% on Thursday, May 28, after a fresh round of strikes in the ongoing conflict between the United States and Iran.

This signals that Indian stock markets are likely to witness a gap down opening Indian benchmark indices on Friday, May 29. The Indian stock markets are shut today to observe Bakri Id.

Currently, the global tensions are on the rise, while surging crude oil prices, and weakness across Asian markets have significantly dented investor sentiment globally.

What Triggered This Fall?

The dip comes post the overnight US military strikes on an Iranian military site, while diplomatic deliberations between Washington and Tehran continue.

In response, Iran’s Revolutionary Guards, the country struck a US airbase at around 4:50 a.m. local time, as reported by Iran’s semi-official Tasnim news agency. However, the group did not disclose the exact location of the targeted base.

Also Read: Is India Ready for Tourism? Severe Jams and Overcrowding Spark Alarm

At the same time, Kuwait, a major US ally in the Gulf region, reported missile and drone attacks, adding to fears that the conflict may be expanding across the Middle East.

US officials said Central Command forces intercepted and destroyed four Iranian one-way attack drones near the Strait of Hormuz after they were deemed a threat to commercial shipping and US military assets. The US military also carried out strikes on an Iranian ground control station in Bandar Abbas that was reportedly preparing to launch another drone.