Nifty, Sensex Extend Losses, Fall 0.3% Each Amid Heightened US-Iran Tensions

Indian stock markets extended losses on May 5, falling around 0.3 per cent during opening. Selling sentiment in the market persisted amid negative global cues.

The benchmark Nifty was trading over 80 points down at 24,050.40. The Sensex was trading over 215 points down at 77,054.31 at the time of writing.

The fragile month-old ceasefire between Iran and US continued to send jitters across global markets as they continued to exchange fire. Iran launched missile attacks on the UAE, with reports of attacks on a South Korean cargo ship near the Strait of Hormuz, which remained in a bind, restricting supply. This further raised fears of prolonged geopolitical tensions which could weigh on growth globally.

Meanwhile, US President Donald Trump said that Iran ‘will be blown off the face of earth’ if it targets US ships protecting cargo vessels. Trump had earlier announced that the US will ensure safe passage for ships passing through the Strait of Hormuz.

Overnight, US stock markets fell, which added to the fall in domestic markets, amid heightened geopolitical tensions and elevated crude oil prices. Brent crude oil futures continued to hover around $114 per barrel on May 5, after surging around 6 per cent in the previous session. The rupee extended its losses and hit a fresh low of 95.39 against the US dollar in early trade.

(This is a developing story. More updates to follow)