Sensex, Nifty set for weak start on March 4 as Gift Nifty falls 700 pts on US-Iran tensions

Stock market today news: Global markets decline on US-Iran war.

• Sensex and Nifty set for weak start amid West Asia tensions.
• Global markets fall as Iran conflict pushes oil prices higher.
• Rising crude prices raise inflation concerns for India.

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The equity benchmark indices Sensex and Nifty are set for a weak start on Wednesday, tracking sharp losses in Gifty Nifty and global markets amid escalating tensions in West Asia. The domestic markets were shut on Tuesday on the occasion of Holi.

Gift Nifty extended losses as the war in Iran entered its fourth day, increasing worries about disruption to India's energy supplies and stoking fears of higher inflation. At around 4:45 pm, the Gift Nifty futures were trading at 24,321, down 671.5 points or 2.7 percent, indicating a negative start for domestic equities.

The decline follows a risk-off sentiment across global markets after US-Israel strikes on Iran pushed crude oil prices sharply higher, raising concerns over energy supplies and inflationary pressures.

US President Donald Trump on Monday sought to justify a broad, open-ended military campaign on Iran, stating that the operation was ahead of expectations.

In Asia, South Korean stocks logged their worst selloff since 2024 amid rising geopolitical risks. The Kospi plunged 7.2 percent in its worst session since August 2024 as markets reopened after a holiday. Chipmakers Samsung Electronics Co. and SK Hynix Inc. declined at least 9.9 percent each.

Japan's Nikkei 225 fell over 3 percent, Hong Kong's Hang Seng index dropped more than 1 percent, while Shanghai's SSE Composite index slipped over 1 percent.

European markets were trading sharply lower. The Stoxx Europe 600 was down 2.5 percent as of 2:30 pm IST.

Wall Street futures dropped up to 2 percent, pointing to a weak start for US markets later in the day.

In a fresh escalation, Iran stepped up retaliation by attacking the US embassy in Riyadh and threatened a complete closure of the Strait of Hormuz, a crucial route for global oil and gas shipments. Brent crude rose past USD 80 per barrel after surging more than 7 percent on Monday.

The spike in crude prices has raised concerns about higher input costs for Asian companies and potential pressure on profit margins.

On Monday, the Sensex plunged 2,743.46 points or 3.37 percent to 78,543.73 in early trade. It later settled at 80,238.85, down 1,048.34 points or 1.29 percent.

The Nifty tumbled 575.15 points or 2.28 percent to 24,603.50 during the day before closing 312.95 points or 1.24 percent lower at 24,865.70.