Geopolitical Tensions Roil Indian Markets Amid U.S. Threats

Indian stock markets opened under pressure on Wednesday as tensions between Israel and Iran reached day six, with concerns over potential U.S. intervention adding to investor anxiety. The Nifty 50 started at 24,797.15, down 65.05 points, or 0.26%, while the BSE Sensex dropped 269 points to 81,313.9, a decline of 0.33%.

Geopolitical tensions intensified after U.S. President Donald Trump called for unconditional surrender from Iran, a demand Tehran has rejected. Israel reportedly achieved many military objectives and controls the skies over Iran, yet Iran's missile arsenal poses a continuing threat. Despite losses, Iran's nuclear facilities remain largely intact, suggesting prolonged resistance.

Market expert Ajay Bagga told ANI that the major question is U.S. involvement. "The big question for markets is whether the U.S. will join the conflict, potentially stabilizing the region in the medium term," he said. Analysts also eye the U.S. Federal Reserve's meeting, as expectations of a rate cut diminish due to weak May retail sales.

While Israel and Iran together contribute less than 1% to global GDP, concerns over oil supply disruption loom large, impacting financial markets. Broad market indices on the NSE reflected weak sentiment; Nifty 100, Nifty Midcap, and Nifty Smallcap all saw declines, with major Nifty indices opening in red except Nifty Media and Nifty Realty.

Asian markets showed a mixed trend. Singapore and Hong Kong indices dropped, while Japan's Nikkei 225, Taiwan's Weighted Index, and South Korea's KOSPI recorded gains, highlighting regional variance amid global geopolitical uncertainties.

(With inputs from agencies.)