28 May 2026 Punjab Khabarnama Bureau : Gift Nifty futures plunged nearly 2% after fresh military strikes between the United States and Iran escalated geopolitical tensions, indicating a likely gap-down opening for Indian stock markets on Friday, May 29.
Market sentiment weakened sharply after reports emerged of fresh U.S. strikes targeting Iranian military facilities, followed by retaliatory actions linked to Iranian forces in the Gulf region. Investors globally reacted cautiously amid fears that the conflict could widen further across the Middle East.
Gift Nifty 50 futures reportedly dropped to around the 23,580–23,670 range during Thursday trading, pointing toward a significantly weaker start for benchmark Indian indices when markets reopen after the Bakri Id holiday.
The sharp fall in Gift Nifty suggests that both the NIFTY 50 and BSE SENSEX could open substantially lower on Friday morning.
Crude Oil Spike Hurting Sentiment
Global market concerns intensified as crude oil prices surged following fears of possible disruption around the Strait of Hormuz, one of the world’s most critical energy shipping routes.
India, being heavily dependent on crude oil imports, is particularly vulnerable to rising energy prices. Higher oil costs generally increase:
- Inflation pressure
- Fiscal concerns
- Rupee weakness
- Input costs for companies
- Foreign investor caution
Analysts say geopolitical uncertainty and expensive oil often trigger risk-off sentiment in emerging markets like India.
Global Markets Under Pressure
Asian equities, U.S. futures, and European markets also witnessed weakness after the latest military escalation. Investors shifted toward safer assets amid fears that prolonged tensions could impact global trade and inflation trends.
The broader global selloff has added pressure on Indian equities, which were already facing volatility linked to foreign institutional investor activity and elevated oil prices.
What Triggered The Fall?
According to reports, the U.S. military carried out fresh strikes on Iranian-linked military infrastructure, while Iran reportedly responded with attacks connected to U.S. regional assets and military facilities.
The escalation came despite ongoing diplomatic discussions aimed at reducing tensions between Washington and Tehran.
Market Experts Expect Volatility
Analysts believe Friday’s trading session could witness heightened volatility, especially during opening hours.
Sectors likely to remain under pressure include:
- Aviation
- Paints
- Logistics
- Auto
- Oil-sensitive industries
Meanwhile, energy and defense-related stocks may attract investor attention if crude prices continue climbing.
Investors Advised To Stay Cautious
Market experts are advising investors to avoid panic-driven decisions during volatile trading conditions.
Traders are expected to closely monitor:
- Crude oil movement
- Global market trends
- U.S.-Iran developments
- Foreign institutional investor activity
- Rupee movement
India Markets Closed Thursday
Indian stock exchanges remained closed on Thursday due to Bakri Id, meaning domestic investors were unable to react immediately to global developments during regular trading hours.
As a result, Friday’s opening session could witness sharp adjustments reflecting overnight global sentiment.
Geopolitical Risks Back In Focus
The renewed Middle East tensions have once again highlighted how geopolitical conflicts can rapidly influence:
- Equity markets
- Commodity prices
- Currency movement
- Bond yields
- Investor sentiment
Analysts say markets may remain highly sensitive to further military or diplomatic developments over the coming days.