The benchmark Indian equity indices, Sensex and Nifty 50, are expected to open on a subdued note on Thursday, tracking weak global market sentiment and rising crude oil prices amid escalating tensions between the United States and Iran.
Investor sentiment remained cautious as uncertainty surrounding geopolitical developments weighed on global risk appetite and fuelled concerns about inflationary pressures from higher energy prices.
On Wednesday, June 3, 2026, domestic equity markets ended lower as investors remained cautious ahead of key global developments. The NSE Nifty 50 declined 78 points, or 0.33%, to close at 23,406, while the BSE Sensex fell 304 points, or 0.41%, to settle at 74,346.
GIFT Nifty was trading at 23,315, down 17 points or 0.07%, indicating a negative start for the Indian stock market. The weakness reflects growing concerns over rising crude oil prices and heightened geopolitical uncertainty.
Asia-Pacific markets opened sharply lower on Thursday following overnight losses on Wall Street and escalating tensions between the US and Iran.
South Korea’s Kospi dropped 2%, while the small-cap Kosdaq advanced more than 2% as trading resumed after a holiday. Japan’s Nikkei 225 declined 1.4% after touching a record high in the previous session, while the Topix slipped 0.91%.
Hong Kong’s Hang Seng index futures were quoted at 25,312, below the previous closing level of 25,633.21, indicating a softer opening for the market.
US equity futures traded lower amid rising geopolitical concerns. Futures linked to the S&P 500 declined 0.5%, while Nasdaq 100 futures lost 0.7%. Dow Jones futures were trading near flat levels.
Overnight, Wall Street ended in negative territory as investors reacted to geopolitical uncertainty and rising energy prices.
The Dow Jones Industrial Average fell 620.72 points, or 1.21%, to close at 50,687.07. The S&P 500 declined 0.74% to finish at 7,553.68, while the Nasdaq Composite dropped 0.89% to settle at 26,853.98.
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Crude oil prices remained elevated as market participants monitored developments surrounding US-Iran negotiations.
Brent crude futures traded at $97.07 per barrel, while West Texas Intermediate (WTI) crude futures hovered around $95.43 per barrel. Brent crude has risen significantly from around $90 per barrel recorded on May 29, highlighting the impact of geopolitical uncertainty on energy markets.
Meanwhile, COMEX crude oil prices eased 0.59% to trade at $95.45 per barrel.
Foreign Institutional Investors (FIIs) remained net sellers on June 03, offloading equities worth ₹5,616.56 crore.
Domestic Institutional Investors (DIIs) continued to provide support to the market and were net buyers of shares worth ₹5,740.89 crore during the session.
The US Dollar Index (DXY), which tracks the performance of the US dollar against a basket of six major currencies, was trading 0.09% lower at 99.45.
The Indian rupee weakened against the US dollar, depreciating 0.45% to close at 95.71 on June 03, reflecting pressure from higher crude oil prices and global market uncertainty.
Indian markets are likely to witness a cautious start as investors assess the impact of rising crude oil prices, geopolitical tensions in the Middle East and weakness across global equity markets. Market participants will continue to monitor developments in US-Iran relations, movements in crude oil prices and institutional fund flows for further direction.
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Published on: Jun 4, 2026, 8:23 AM IST
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