1 week ago
Asian Rally, Crude Prices Shape Indian Market Opening
Indian stock markets had a difficult day on Wednesday, with both major indexes falling for the seventh session in a row.
Investors were worried about expensive oil and tensions involving the United States and Iran.
Overnight, many Asian markets rose because U.S. bond yields became less stressful for investors.
South Korea’s market rose especially strongly, while Japan’s market also gained.
However, Gift Nifty pointed to a weaker start for Indian shares.
Oil prices stayed high because investors were concerned about energy supplies and ships using the Strait of Hormuz.
U.S. shares had a better session after Treasury yields declined.
Gold also rose sharply because people often buy it when they are worried about economic or political risks.
Nifty 50 fell 0.32% to 24,078.30, extending its losing streak to seven sessions, while Sensex declined 0.42% to 76,909.68.
Asian equities rose after easing bond-market pressures, with South Korea’s Kospi gaining 3.86% intraday and Japan’s Nikkei 225 advancing 0.95%.
Gift Nifty traded near 24,202.5, down 84.90 points from the previous Nifty futures close, indicating a potentially weaker Indian opening despite broader Asian gains.
Brent crude rose to $91.87 a barrel as investors assessed the U.S.-Iran conflict and risks to shipping through the Strait of Hormuz.
U.S. Treasury yields eased, supporting Wall Street and gold, which climbed more than 4% to a level near its highest price in over two months.
- Who
- Indian stock-market investors, global investors, U.S. officials, and participants in oil and bond markets.
- What
- Global market movements created mixed signals for Indian equities ahead of trading on Thursday, August 20.
- Where
- The developments involved Indian, Asian, U.S., and global financial markets, as well as the Strait of Hormuz.
- When
- The cues followed trading on Wednesday night and were reported for Thursday, August 20.
- Why
- Markets were influenced by easing U.S. Treasury yields, Asian gains, elevated crude prices, and geopolitical tensions involving the United States and Iran.
Supportive Market Signals
Negative Market Risks
Indian market opening
Supportive Market Signals
A recovery on Wall Street, lower U.S. Treasury yields, and gains across Asian markets could support Indian equities.
Negative Market Risks
Gift Nifty was lower than the previous futures close, suggesting a potentially weaker start for the Sensex and Nifty 50.
Investor sentiment
Supportive Market Signals
Easing bond-market pressure and lower yields improved global risk appetite and supported equities and gold.
Negative Market Risks
High crude prices, stalled U.S.-Iran peace negotiations, and concerns about energy supplies continued to weigh on emerging-market sentiment.
Oil outlook
Supportive Market Signals
Crude prices were largely stable in early Asian trade, limiting further immediate price increases.
Negative Market Risks
Brent and WTI had risen for a fourth consecutive session and remained near recent highs, raising concerns about inflation and energy costs.
Key facts
- Nifty 50 close
- 24,078.30, down 77 points or 0.32% on Wednesday.
- Sensex close
- 76,909.68, down 326 points or 0.42%.
- Nifty losing streak
- Seven consecutive sessions, described as its longest since September 2025.
- Gift Nifty
- Around 24,202.5, down nearly 84.90 points from the previous Nifty futures close.
- Brent crude
- $91.87 a barrel, up 25 cents or 0.3% in early Asian trade.
- WTI crude
- September WTI was $85.81 a barrel; actively traded October WTI was $84.53.
- Spot gold
- $4,512.19 per ounce after reaching $4,525.79, its highest level since June 2.
- Asian markets
- MSCI’s Asia-Pacific equity index rose 0.8%; the Kospi gained 3.86% intraday and the Nikkei 225 gained 0.95%.
Quotes
Ajit Mishra – SVP, Research, Religare Broking
Senior Vice President of Research at Religare Broking, providing market commentary
“Markets remained under pressure on Wednesday, extending the prevailing corrective phase amid weak global cues. After an initial decline, the Nifty gradually moved lower as the session progressed and came close to testing the 24,000 mark before settling at 24,078.30, down around 0.32%. The Sensex closed at 76,909.68, lower by around 0.42%.”
livemint.com
Sources
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