GIFT Nifty Falls Nearly 3% After US Fed Rate Decision, Iran’s Warning Of Attack On Gulf Oil Facilities
The Indian markets are likely to see a gap down opening on Thursday amid the escalating tensions in the US and the addition of inflation fears. The US Fed rate decision and Iran’s warning of an attack on Gulf oil facilities have led to a decline in the GIFT Nifty.
As of 1:32 a.m., the GIFT Nifty was trading at 23,192.50, down 2.55% or 597 points, slipping near the 23,200 mark. The US markets also fell amid war jitters and the US Federal Reserve maintained its interest rate. The S&P 500 and tech-heavy Nasdaq fell 1.3%, while the Dow Jones Industrial Average fell 1.6%.
US Fed Rate Decision
The US Federal Reserve on Wednesday kept its key interest rate unchanged for the second time, in line with expectations. The core inflation rate is expected to be at 2.7% by the end of 2026, up from 2.5% forecast in December.
Chair Jerome Powell added that if inflation does not ‘progress’ there will be no rate cuts. However, while the Fed’s projections forecasted around two more rate cuts this year, he acknowledged that could change if inflation remains stubborn. The inflation fears have been a major concern for investors and have led to a decline in the markets.
Iran’s Warning Of Attack On Gulf Oil Facilities
Iran warned of an attack on Gulf oil facilities in retaliation to the hit on its South Pars gas field and nearby infrastructure, further pushing the markets lower. The attack on South Pars would mark the first strike on Iran’s upstream facilities since the war began.
The US struck oil export hub Kharg Island late last week, but it limited that attack to military targets. In response to the attack, Iran’s Islamic Revolutionary Guard Corps responded by publishing a list of Gulf energy sites in Saudi Arabia, the United Arab Emirates, and Qatar.
Impact On Indian Markets
The decline in the GIFT Nifty and the US markets is likely to have a negative impact on the Indian markets. The Indian markets are already facing inflation fears and the US Fed rate decision has added to the concerns.
Investors are advised to be cautious and keep an eye on the developments in the US and the Middle East. The stock market news and the Nifty levels will be crucial in determining the direction of the markets.
Conclusion
In conclusion, the GIFT Nifty fell nearly 3% after the US Fed rate decision and Iran’s warning of an attack on Gulf oil facilities. The Indian markets are likely to see a gap down opening on Thursday and investors are advised to be cautious. The investing tips and the market analysis will be crucial in determining the direction of the markets.