02/04/2026
Market Update - Nifty decline by 2%, Asian Market drop up to 3% and US Index Future fell over 1% After Trump Repeats Attack on Iran
Equity benchmark Nifty declined nearly 2% after reports suggested that Donald Trump may continue military operations in Iran over the coming weeks.
The sell-off in domestic equities followed renewed geopolitical concerns after Trump indicated that the US was close to achieving its military objectives but cautioned that further escalation could occur if diplomatic talks fail.
Oil prices surged in response to these developments, with Brent crude futures rising about 5% to around $106.5 per barrel, reflecting fears of potential supply disruptions.
Globally, market sentiment remained weak as Asian equities declined up to 3%, while US index futures dropped more than 1% after the renewed threat of military action dampened hopes of a near-term resolution to the conflict.
In the broader market, Nifty Midcap, Smallcap, pharma, and PSU Bank indices each fell by 3%, indicating widespread selling pressure.
Going ahead, intraday volatility is expected to remain high, with traders likely to stay cautious—particularly ahead of the extended holiday period.
Near-term market direction will be largely influenced by geopolitical developments, movements in crude oil prices, global market trends, and fluctuations in the USD/INR exchange rate.