Gift Nifty Signals Weak Opening; FII Outflows, Global Cues Keep Markets On Edge | June 4, 2026

Gift Nifty pointed to a negative start for Indian benchmark indices on Thursday as investors assessed rising geopolitical tensions in the Middle East, continued foreign fund selling and weakness across global equity markets.

Early trade in Gift Nifty indicated that the Nifty 50 could open lower, with the contract trading near 23,346, around 170 points below the previous close of Nifty futures. The signal comes after domestic equities ended Wednesday’s session in the red despite recovering from deeper intraday losses.

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The BSE Sensex closed 303.67 points lower at 74,346.17, while the Nifty 50 declined 77.95 points to settle at 23,405.60.

Gift Nifty Remains The Key Indicator

Market participants are closely tracking Gift Nifty after global developments weakened risk appetite overnight.

The sharp discount to Nifty futures suggests investors remain cautious ahead of the Reserve Bank of India’s monetary policy decision and amid uncertainty surrounding developments in West Asia. Weak global cues and sustained foreign investor selling are also expected to influence sentiment at the opening bell.

Foreign Investors Continue To Sell

Foreign institutional investors remained net sellers in Indian equities on Wednesday. Provisional exchange data showed FIIs sold shares worth ₹5,616.56 crore during the session. Domestic institutional investors provided support by purchasing equities worth ₹5,740.89 crore.

Persistent foreign outflows have emerged as one of the key concerns for the market in recent weeks, particularly as global investors reassess allocations amid geopolitical uncertainty and elevated commodity prices.

Asian Markets Trade Lower

Most Asian markets declined on Thursday following overnight losses on Wall Street. Japan’s Nikkei 225 fell 1.4%, while the broader Topix index dropped 0.91%. South Korea’s Kospi declined 2%, although the Kosdaq index traded higher. Hong Kong futures also indicated a weak opening.

The cautious mood followed renewed concerns surrounding the U.S.-Iran conflict and its potential impact on inflation and energy markets.

Wall Street Ends In Negative Territory

U.S. equities dropped on Wednesday due to worries about geopolitics and inflation. The Dow took a hit too, falling 620.72 points, that's 1.21%, ending at 50,687.07.The S&P 500 lost 56.06 points, while the Nasdaq Composite declined 239.92 points.

Technology and financial stocks were among the major drags on the market. Several large-cap technology companies ended lower, contributing to the broader weakness across U.S. indices.

Oil, Gold And Dollar In Focus

Crude oil prices eased after reports of a ceasefire agreement between Israel and Lebanon raised hopes for reduced tensions in the region. Brent crude traded at $97.14 per barrel, while WTI crude stood at $95.40.

Gold prices rose, with spot gold gaining 0.4% to $4,450.16 an ounce. Geopolitical uncertainty means investors continue to flock to safe havens.

Meanwhile, the U.S. dollar remained firm near recent highs. The dollar index traded around 99.47, reflecting continued demand for the greenback.

With Gift Nifty indicating a weak opening and global markets remaining under pressure, investors are likely to monitor foreign fund activity, crude oil prices and policy-related developments for further direction during Thursday’s session.