It was another choppy session for Indian markets on Thursday, 4 June, as both headline indices remained range-bound and ended with modest gains. Weak global cues and rising crude oil prices kept investor sentiment subdued, preventing bulls from taking control of Dalal Street.
The Nifty 50 and Sensex closed 0.14% and 0.03% higher at 23,396 and 74,368, respectively. The broader market, however, outperformed the benchmark indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices rising 0.43% and 0.52%, respectively.
Investors navigated heightened volatility in the markets as conflicting statements from the US and Iran regarding a potential near-term peace deal kept traders cautious about taking fresh positions. Although crude oil prices softened during the session, they continued to remain elevated, sustaining concerns over potential interest rate hikes.
US President Donald Trump said on Wednesday that progress in negotiations with Iran could be achieved as early as this weekend. Despite these diplomatic and political signals, tensions in the region remain elevated.
Both Iran and the US recently exchanged attacks, with Tehran resuming strikes on neighbouring countries. Meanwhile, US forces reportedly carried out strikes on Qeshm Island in response to attempted attacks by Iran.
While Indian equities struggled to gain momentum, US and select Asian markets have been scaling multiple record highs, driven by the AI-led rally. This has made domestic stocks relatively less attractive for overseas investors and has also weighed on India’s position in global market capitalisation rankings.
