GIFT Nifty Falls Over 1% As Iran Warns Of Attack On Gulf Oil Facilities
The Indian stock market is witnessing a gap-down opening as GIFT Nifty, India’s early market indicator, fell over 1% on Wednesday evening after Iran warned of attack on Gulf oil facilities in retaliation to the hit on its South Pars gas field and nearby infrastructure.
At around 9 p.m., GIFT Nifty was trading at 23,465, down 1.41% or 335 points, slipping below the 23,500 mark. Dow Jones also slumped nearly 1%, shedding over 400 points to trade at 46,570.64 within one hour of market open. Losses in big tech weighed on the Nasdaq index which slipped over 0.7% to 22,317 and S&P 500 declined 0.7% to 6,670.15.
Oil and Gas Prices Jump
Oil and gas prices jumped on Wednesday after the developments. According to data from Bloomberg, Brent oil climbed as much as 5% to a high of $108.60 a barrel, while Europe’s gas benchmark jumped as much as 7.9%.
The attack on South Pars would mark the first strike on Iran’s upstream facilities since the war began. While the US struck oil export hub Kharg Island late last week, it limited that attack to military targets.
Iran’s Response
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. According to the IRGC, these locations have become direct and legitimate targets, the semi-official Tasnim news agency reported.
Earlier in the day, Iran media reported that Phases 3, 4, 5, and 6 of the South Pars gas field were hit, forcing a shutdown to contain a fire. Firefighters were deployed, however, no casualties were reported. Qatar condemned the attack saying Israeli targeting of facilities linked to Iran’s South Pars field, an extension of Qatar’s North Field, is a dangerous and irresponsible step amid the current military escalation in the region.
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Impact on Indian Markets
The Indian stock market is likely to be impacted by the developments in the Middle East. The Nifty today is expected to be volatile, with investors closely watching the developments in the region. The Sensex news will also be closely watched, as the Indian economy is heavily dependent on oil imports.
Conclusion
In conclusion, the GIFT Nifty has fallen over 1% after Iran warned of attack on Gulf oil facilities. The Indian stock market is likely to be impacted by the developments in the Middle East, with investors closely watching the Indian stock market news. For more information on Q1 results and top stocks in focus, please visit our website.