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Informist, Wednesday, Jun. 3, 2026

By Arundathi A R

MUMBAI – After bucking a four-day losing streak Tuesday, the domestic equity indices may open slightly lower Wednesday as crude oil prices resumed their climb on renewed US attacks on Iran. Oil prices surged to $97 per barrel from a low of $92 a barrel in the previous session. However, most Asian markets were higher in early trade.

The US military's Central Command said its forces conducted "self-defence" strikes on Qeshm Island in Iran and "defeated multiple" Iranian missiles and drones, as civilian vessels and regional allies Kuwait and Bahrain came under attack, according to a report by Al Jazeera. US President Donald Trump reacted to the reports that negotiations with Iran to end the war have stalled, saying that "conversations between us have been going on continuously."

According to a statement from the US military's Central Command, Iran had launched several ballistic missiles at neighbours, though none hit their intended targets, CNBC reported. Iran is reportedly reviewing an agreement proposed by the Trump administration to cease the war, but has not communicated with Washington for a few days, CNBC reported, citing Iranian media.

A day after Trump said Israeli Prime Minister Benjamin Netanyahu had agreed to call off planned attacks on Beirut's southern suburbs, Israel continued its bombing campaign in southern Lebanon, Al Jazeera said.

At 0727 IST, the Brent crude oil August futures contract was over 1% higher at $97.07 per barrel. So far this week, oil prices have risen by over 6%. "Prices (oil) are likely to remain elevated relative to pre-war levels until a final settlement is reached on the key points under negotiation," said Ashwini Shami, president and chief portfolio manager at Omniscience Capital. "Beyond that, oil prices could decline sharply if increased production from other regions creates a temporary oversupply in the global market," he said.

Foreign investor selling increased on Tuesday from Monday. FPIs net sold shares worth INR 83.63 billion Tuesday, up from INR 39.12 billion shares sold on the previous day. Domestic investors continued to lend support to the equity market by net buying shares worth INR 95.89 billion. Shami said the trend of foreign investors selling is expected to reverse once yields on US Treasuries begin to moderate. "A resolution of the West Asia crisis and a moderating inflation outlook could prompt the (US) Fed to resume interest rate cuts," he said.

Emkay Global Financial Services expects 13.8% earnings-per-share growth for the Nifty 50 in 2026–27 (Apr-Mar), after companies delivered strong earnings growth in the March quarter for a second consecutive quarter, the brokerage said in its India strategy report. "The internals of the results were encouraging, robust topline, strong broad-based growth, and healthy cash flows and balance sheets," it said.

However, the brokerage flagged a slowing in capital expenditure to 9% on-year as a concern. It sees a strong earnings recovery setting the stage for a robust FY27 for Indian equities, while the continued war in West Asia, with an extended closure of the Strait of Hormuz for the next one to two months, poses a serious risk.

The persisting geopolitical crisis is expected to have a significant negative impact on the revenue and profitability of domestic micro, small, and medium enterprises in FY27, according to a report by Crisil Intelligence Tuesday. The revenue growth of these enterprises is expected to decline by 100 basis points on-year to 7.5–8.5% and the earnings before interest, tax, depreciation, and amortisation margin is likely to decline by 50–100 bps to 5–5.5%, the report said.

In another development, InterGlobe Aviation Tuesday said it planned to return one Boeing 787-9 Dreamliner to Norse Atlantic Airways. Due to ongoing international airspace constraints that have significantly increased flight durations and a challenging cost environment, the airline discontinued its flight operations to and from Manchester with effect from Aug. 31, the company said. Shares of InterGlobe Aviation closed 0.3% higher Tuesday.

At 0754 IST, the June futures contract of GIFT Nifty was 0.1% lower at 23479.50 points from its previous close. This was four points lower than the Nifty 50's Tuesday's close of 23483.55. The GIFT Nifty movement also suggests a tad lower opening for the Nifty 50 Wednesday.

"On the downside, immediate support is placed at 23420 (level)," Rupak De, senior technical analyst at LKP Securities, said. "A breach below this level could trigger another decline towards 23200. On the upside, resistance is positioned around 23600."

Barring the IDX Composite and Hang Seng Index, all major Asian indices were higher in early trade. Japan's Nikkei 225 and Taiwan's TAIEX were the biggest gainers, up over 2% each. All three major US indices settled higher on Tuesday.  End

US$1 = INR 95.265

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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