Indian stock market: Gift Nifty tumbles 350 points amid escalating US-Iran conflict; Brent crude hovers near 2-year high
The Gift Nifty is down 350 points, hinting at a potential continuation of market losses. Despite a brief recovery in Indian indices led by metal and auto stocks, geopolitical tensions in the Middle East and halted tanker traffic are impacting oil prices and market stability.
The Gift Nifty is trading 350 points lower in late trading on Thursday, 5 March, indicating that markets could resume their losing streak when trading opens on Friday, 6 March.
After a three-day brutal sell-off that wiped out billions of investors’ wealth, Indian benchmark indices staged a strong recovery in today's session, with the rally led by metal and auto stocks, but those gains appear to be short-lived, given the weak indication from the Gift Nifty.
The war in the Middle East, which was triggered after the US and Israel killed Iran’s supreme leader and top military officials, entered its sixth day on 5 March, with Tehran continuing its attacks on US forces in Iraq and Kuwait and struck an oil tanker in the Persian Gulf, while Israel reportedly said it carried out a twelfth wave of airstrikes on the Iranian capital, hitting military and intelligence assets.
As the war shows no signs of abating, Brent crude jumped 3% to $85 per barrel, approaching its highest level since July 2024.
Tanker traffic through the Strait of Hormuz — the world’s most vital transit route for crude oil — had come to a halt after an Iranian Revolutionary Guard commander threatened to set fire to ships attempting the route.
Ship-tracking data now shows around 300 oil tankers currently inside the Strait of Hormuz, with traffic in and out of the chokepoint all but halted following the outbreak of the war, according to Reuters.
On Tuesday, US President Donald Trump said that the US is preparing to provide risk insurance and escorts for ships in the Persian Gulf to ensure traffic can move through the Strait of Hormuz. However, the White House has so far not provided additional details on this.
Meanwhile, earlier this week, QatarGas announced that it has stopped LNG output at its main facility after military attacks. This is Qatar’s main LNG facility and handles 82 mmtpa of LNG, or about 25% of global LNG supply.
US stock market today
The US key averages saw renewed selling in today's session, with the Dow Jones Industrial Average falling 900 points, or 1.8%, at the day's low of 47,834, while the S&P 500 and the Nasdaq Composite dipped 1% and 0.40% respectively.
Investors await key economic data, with initial jobless claims due later today, while the more critical unemployment rate and nonfarm payrolls numbers are scheduled for tomorrow, which will provide cues about the Federal Reserve System’s rate-cut outlook.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About the Author
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.