Sensex, Nifty Flip-Flops As Markets React To Mixed US–Iran Ceasefire Signals

Benchmark indices opened on a weaker note on June 4, tracking a sell-off across global markets amid mixed signals over the US-Iran ceasefire. Sentiment was further weighed down by caution ahead of the Reserve Bank of India’s monetary policy decision, due on June 5.

The BSE Sensex opened the session with a gap-down of 410.34 points, or 0.55 per cent, at 73,935.83, while the NSE Nifty 50 started lower by 123.15 points, or 0.53 per cent, at 23,282.45.

However, a few hours into the session, the benchmark indices recovered from the initial losses. As of 10:20 AM, Sensex was up by 120 points, or 0.16 per cent, around 74,470 level. Likewise, Nifty 50 was up by 38 points, or 0.15 per cent, around 23,440 level.

Broader markets, mirroring the benchmarks, opened in the negative territory, but soon recovered to trade in green. Both the Nifty Midcap 100 and Nifty Smallcap 100, as of the time of filing the report, were trading higher.

The overall market breadth seemed to be favouring bulls. With 3,074 stocks traded on the NSE so far, 2,116 stocks advanced and 850 stocks declined, while 108 stocks remained at unchanged levels.

Barring consumer durables, oil & gas, and FMCG, all other major sectoral indices traded in the red.

Banks, which saw a strong recovery in the previous session, were down in early trade. Nifty Realty and Nifty IT emerged as the biggest sectoral losers, falling in the 0.50-0.80 per cent range.

Other sectoral indices such as metals, auto, PSU banks, private banks, and financial services were all in the negative territory.

Amongst the Nifty 50 stocks, Trent, Tata Motors Passenger Vehicle, Eicher Motors, Infosys, SBI Life Insurance, heavyweight HDFC Bank, Bajaj Finserv, and Hindalco were the top losers, falling between 1 per cent and 2.35 per cent.

On the other hand, providing support to the index were Eternal (formerly Zomato), Adani Enterprises, and Asian Paints rose over 1 per cent each.

US-Iran War: Mixed Signals Over Ceasefire

Peace talks between the US and Iran to end the war were showing no clear signals, which is confusing investors across the globe. US President Donald Trump said negotiations have gone “very well,” but Iran’s Foreign Minister Abbas Araghchi maintained that there has been no “significant progress” in recent days.

Separately, the US House of Representatives passed a resolution on June 3 to withdraw American troops from the Iran war. The measure cleared the House 215–208, with a small group of Republicans joining Democrats in support. It now moves to the Senate for consideration.

Crude Oil Prices Ease On Revival Of Israel-Lebanon Ceasefire

Crude oil prices eased nearly a percentage point as Israel and Lebanon agreed to a renewed ceasefire framework, easing concerns over supply disruptions and raising hopes of wider regional peace.

However, the agreement depends on Hezbollah stopping fire and pulling its fighters out of southern Lebanon, so some uncertainty still remains.

The development helped cool oil prices, which had risen earlier due to escalation in tensions in the region.

The international benchmark Brent crude oil futures, was down nearly 0.90 per cent at $97 a barrel, while the US oil benchmark traded around $95.20 per barrel, down by 0.85 per cent.

Rupee Volatile

The rupee, after briefly strengthening to around 95 against the dollar, has again come under pressure. The USD/INR pair had moved up to about 95.83 in the last few sessions.

As of 10:11 AM, it was trading at 95.59, down 0.12 per cent from the previous close, showing a slight recovery during the day.