Nifty likely to open below 24,000 tomorrow as report says two missiles hit an US warship in Hormuz; Brent crude up nearly 5%
Iran’s Fars news agency reported on May 4 that two missiles hit US warship near Jask island, forcing warships to turn back after ignoring Iran warnings
Benchmarks Sensex and Nifty might see a gap-down opening on May 5 as Iran’s Fars news agency reported on May 4 that two missiles hit US warship near Jask island, forcing warships to turn back after ignoring Iran warnings.
This, after US President Donald Trump announced a naval mission, dubbed Project Freedom, to guide stranded ships out of the Strait of Hormuz, with operations set to begin in the coming hours.
At 3:56 pm on May 4, GIFT Nifty was trading 0.6% lower at 24,010.5. Meanwhile, Brent crude was trading nearly 5% higher at $113.35.
Shortly before, Tasnim, another Iranian news agency, announced the government had “redefined the control zone” in the Strait of Hormuz and effectively set out maritime borders within which Tehran would regulate shipping traffic.
Meanwhile, Iran’s Foreign Ministry said it is assessing a response from Washington to its latest 14-point proposal to end the war. Trump had called Tehran’s proposal “unacceptable”.
US futures reversed early gains and European stocks fell further into the red as tensions flared up in the Middle East. Contracts on the Nasdaq 100, Dow Jones and S&P 500 fell up to 0.7%. Europe’s benchmark Stoxx 600 index declined 1%, while Brent crude spiked more than 4% to above $112 a barrel. An index of the dollar rose.
Stocks reversed early gains after Iran’s FARS news agency claimed that two missiles had hit a US warship after it had ignored warnings. Trump earlier said the US would begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. The announcement left shipping executives perplexed, as attacks continue and traffic remains at a near standstill.
However, an US official told Al Jazeera the claim by Iran of striking an American navy vessel with two missiles is not true.
Meanwhile, Indian equity benchmarks rose on Monday, supported by softer oil prices, upbeat automaker sales data, and trends in state election results, but losses in technology stocks and Kotak Mahindra Bank capped gains.
The Nifty 50 added 0.51% to 24,119.30, and the BSE Sensex gained 0.46% to 77,269.40.
Thirteen of 16 major sectors logged gains. The broader small-caps and mid-caps added 0.7% and 0.6%, respectively.