Overview
- US and Iranian forces exchanged strikes in the Gulf on Wednesday, with US strikes on Iranian radar and drone sites and Iran launching missile and drone attacks that struck regional targets.
- Brent crude jumped toward $97–$98 a barrel, a swift move that raises fuel and transport costs for India and puts upward pressure on inflation and the current account.
- Indian markets swung violently on June 3, with the Sensex plunging over 1,150 points intraday before ending about 300 points lower as traders took profits and cut exposure.
- Information‑technology stocks led losses, the Nifty IT index fell roughly 5–5.6% and Tata Consultancy Services dropped more than 8%, while foreign institutional investors sold about Rs 8,362.92 crore and India VIX rose about 8%.
- Traders are now focused on the RBI's June 5 monetary policy meeting for guidance on rates and on any diplomatic progress that could ease oil and market stress.