GIFT Nifty Futures Down By 300 Points; Know the Reason

As per NSE, GIFT Nifty Futures were at 23,661, down 314 points or 1.34 per cent at 11:23 IST on May 28, 2026, while Nifty 50 had last closed at 23,907.15 on May 27. NSE also lists May 28, 2026 as a trading holiday for Bakri Id, which means GIFT Nifty is acting as the main price-discovery indicator while Indian cash markets are shut.

Key reasons for GIFT Nifty falling

1. Trump’s comments signalled that the Iran deal is not done yet

US President Donald Trump said the US was not yet satisfied with the proposed deal with Iran and added that Washington was not discussing easing sanctions. He also said Iran wanted a deal, but the current proposal had not reached the point where the US was comfortable. This reduced market confidence that a quick de-escalation was around the corner.

2. Trump used aggressive language, raising escalation fears

Trump said Iran had not “gotten there” on the deal and warned that either the US would be satisfied or it may have to “finish the job.” Such remarks matter for markets because they keep the probability of further military action alive, especially when the conflict is already affecting crude oil and shipping sentiment.

3. Strait of Hormuz remains the central risk

Trump dismissed reports that Iran and Oman could jointly manage Strait of Hormuz traffic. He said no single country would control the waterway and called it international waters. Reuters also reported that the strait handled around a fifth of the world’s oil and LNG traffic before the war, making it a major trigger for crude oil volatility.

4. Fresh US-Iran military exchange spooked markets

Reuters reported that the US military shot down four Iranian attack drones and struck a ground control station near Bandar Abbas. Iran’s Revolutionary Guard then said it targeted a US airbase in response. This directly challenged hopes of a ceasefire and pushed markets into a risk-off mode.

5. Crude oil rebounded, which is negative for India

After the escalation, Brent crude rebounded to around USD 96.31 per barrel, while US crude also rose. Higher crude is negative for India because it can widen inflation pressure, increase import costs, weigh on the rupee and hurt margins for oil-sensitive sectors such as paints, aviation, Logistics and chemicals.

6. Asian markets also weakened

This was not an India-only move. Reuters reported weakness across Asian equities, while AP noted declines in South Korea, Hong Kong, Shanghai and Australia after fresh US strikes against Iran. That broader risk-off sentiment also fed into GIFT Nifty.

Do you think rising geopolitical tensions and crude oil volatility could impact Indian markets in the near term? Share your views in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.