Opening Bell: Nifty 50, Sensex Fall Sharply on U.S. President Trump’s Iran Remarks; Brent Crude Surges

Market Update at 09:28 AM: Indian markets opened sharply lower on Thursday as traders reacted to U.S. President Donald Trump’s comments on escalating tensions with Iran. The Nifty 50 fell 1.9 per cent or 452.40 points to trade at 22,227, while the Sensex declined 1.92 per cent or 1,404.50 points to 71,729.34 as of 9:16 AM.

President Trump stated that the U.S. would hit Iran hard in the next two to three weeks, dampening hopes of an early ceasefire in the Middle East. He also mentioned that discussions are ongoing with Tehran and suggested the conflict may not last long. The mixed messaging from Washington created uncertainty and added to market nervousness.

Brent crude prices surged in response to Trump’s address, with expectations that tensions in the Strait of Hormuz could disrupt oil supplies. The April Brent contract rose 3.54 per cent to USD 104.74 per barrel, further weighing on investor sentiment.

Pre-Market Update at 7:44 AM: Indian benchmark indices, the Sensex and Nifty 50, are likely to open lower on Thursday, April 2, as investor sentiment turned cautious after U.S. President Donald Trump warned of intensified military action against Iran over the next two to three weeks.

As of 7:25 am, GIFT Nifty was trading around the 22,437 level, down over 400 points from the previous close of Nifty futures, indicating a significant gap-down start for the Indian stock market.

Asian markets also traded lower, reflecting the weak global cues, even as Wall Street ended higher overnight, supported by gains in heavyweight stocks.

Asian markets were under pressure on Thursday. Japan’s Nikkei 225 fell 1.29 per cent, while the Topix declined 0.72 per cent. South Korea’s Kospi dropped 3.93 per cent and the Kosdaq slipped 2.67 per cent. Hong Kong’s Hang Seng index was also down 0.73 per cent in early trade.

In a key geopolitical development, U.S. President Donald Trump said that the U.S. could intensify its offensive against Iran over the next two to three weeks. In a televised address, he noted that American forces are close to achieving their strategic objectives and would “finish the job” soon, raising concerns among global investors.

Meanwhile, Japanese government bond yields edged higher, with the 10-year yield rising 1 basis point to 2.31 per cent after three consecutive sessions of decline. The 5-year yield also increased by 1.5 basis points to 1.745 per cent.

Crude oil prices moved higher following the geopolitical tensions. Brent crude rose 1.45 per cent to USD 103 per barrel, while U.S. WTI crude gained 0.91 per cent to USD 101.34 per barrel.

In the currency market, the U.S. dollar remained largely steady in thin trading. The dollar index was little changed at 99.56 after declining 0.3 per cent in the previous session.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.83. On the Put (PE) side, the 22,500 and 22,000 strikes have significant open interest, indicating strong support levels. On the Call (CE) side, the highest open interest is concentrated at the 23,000 strike, suggesting a strong resistance level.

Technically, 22,300 is likely to act as immediate support for the Nifty 50, while 22,632 is expected to act as resistance. A sustained move above this level could push the index towards 23,000.

There are no stocks in the F&O ban list for April 2.

Institutional activity remained skewed towards selling by foreign investors. On April 1, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,331.15 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 7,171.80 crore. FIIs have now been net sellers for 22 consecutive trading sessions.

On Wednesday, the Indian stock market snapped its two-day losing streak and ended with strong gains. The Sensex surged 1,186.77 points, or 1.65 per cent, to close at 73,134.32, while the Nifty 50 rose 348.00 points, or 1.56 per cent, to settle at 22,679.40.

In the U.S., markets closed higher on Wednesday. The Dow Jones Industrial Average gained 0.48 per cent to 46,565.74, while the S&P 500 rose 0.72 per cent to 6,575.32. The Nasdaq Composite outperformed, climbing 1.16 per cent to 21,840.95.

Among key stocks, Nvidia rose 0.75 per cent, AMD advanced 3.33 per cent, and Alphabet gained 2.79 per cent. Tesla also added 2.79 per cent, while Intel surged 8.8 per cent. Intuitive Machines jumped 9 per cent, Planet Labs gained 10 per cent, and Rocket Lab rose 2 per cent. Eli Lilly advanced 3.8 per cent, while Nike declined sharply by 15.5 per cent.

In commodities, gold prices declined from a two-week high, with spot gold falling 1.48 per cent to USD 4,686.18 per ounce. Spot silver also dropped 3.03 per cent to USD 72.79.

Disclaimer: The article is for informational purposes only and not investment advice.