Editor's Take: Markets on edge after Trump remarks; Anil Singhvi lists 5 risks for today’s trade

Nifty, Sensex Today: Indian benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday. Investor sentiment has turned cautious after Donald Trump said the US could intensify attacks on Iran over the next two to three weeks.

The remarks have raised fears of a prolonged conflict in West Asia. This could disrupt oil supplies and push inflation higher globally.

Asian markets reverse gains

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Asia-Pacific markets erased early gains after Trump’s latest comments dampened hopes of an early ceasefire in the Middle East.

He also said discussions are ongoing with Tehran and hinted that the war may not last long. The mixed messaging unsettled traders and added to volatility.

Japan’s Nikkei 225 and South Korea’s Kospi were trading about 1.8 per cent and nearly 4 per cent lower, respectively.

GIFT Nifty signals gap-down start

GIFT Nifty was trading around 22,422. This reflects a discount of nearly 399 points to the previous close of Nifty futures. The trend indicates a gap-down opening for Indian markets.

Markets snap two-day losing streak

On Wednesday, Indian equities closed sharply higher and snapped a two-day losing run.

The Sensex rose 1,186.77 points, or 1.65 per cent, to close at 73,134.32. The Nifty 50 gained 348 points, or 1.56 per cent, to settle at 22,679.40.

The rally was led by broad-based buying across sectors.

Trump’s comments shift market mood

According to market experts, the latest remarks from Trump disappointed investors who were expecting signs of de-escalation.

He indicated a tougher stance on Iran. This includes possible strikes on oil infrastructure and power facilities if a deal is not reached.

He also suggested that the US does not depend on Middle East oil. This reduces urgency to stabilise key routes such as the Strait of Hormuz.

This has increased concerns that the conflict could last longer than expected.

Why GIFT Nifty is under pressure

GIFT Nifty declined sharply after the speech.

Key reasons include:

• No indication of an early end to the war
• Rising risk of escalation and prolonged conflict
• Crude oil prices jumping near $105 per barrel
• Concerns over a global energy shock
• Inflation risks increasing again

Market participants also noted that US markets had rallied ahead of the speech, but sentiment reversed after the fresh commentary.

Editor’s take: Anil Singhvi highlights key questions

Anil Singhvi flagged multiple risks for traders:

• The war may stretch longer than expected
• Crude oil could move towards $120 if tensions rise
• Foreign institutional investors (FIIs) may continue selling
• Key support levels for Nifty will be crucial
• Volatility may increase ahead of the long weekend

He also raised the possibility of markets retesting recent lows if pressure builds.

Iran signals softer stance

Meanwhile, Masoud Pezeshkian has reached out to the American public through an open letter. He said Iran is not an enemy and questioned US military actions.

The contrasting signals from both sides have added to uncertainty.