1 day ago
Global Cues Point to Lower Indian Stocks Amid Oil Rise
Indian shares may start lower because markets around the world were cautious overnight.
Gift Nifty, which gives an early signal for Indian trading, was down.
Asian markets also fell, especially in South Korea.
Oil became more expensive after fresh fighting between the United States and Iran.
Higher oil prices can raise concerns about inflation and India’s trade finances.
US stock futures were mostly steady after American markets finished lower in the latest session.
Even so, major US indexes gained during August.
Investors are waiting for Indian economic data, car sales figures, manufacturing reports and US jobs data.
Gold prices stayed almost unchanged while investors watched the Middle East conflict and awaited the US data.
Gift Nifty traded nearly 33 points lower at around 24,212, signaling a weak opening for Indian markets.
Asian equities fell broadly, with South Korea’s Kospi and Kosdaq down more than 1% in early trading.
Brent crude rose to $91.05 a barrel as renewed US-Iran fighting raised supply-disruption concerns.
US stock futures were mostly muted, although the S&P 500, Nasdaq Composite and Dow all posted monthly gains in August.
Indian markets ended lower on Monday, with the Sensex falling 0.40% to 76,957.27 and the Nifty declining 0.39% to 24,080.40.
- Who
- Indian investors and markets, alongside global investors monitoring the United States, Iran and major Asian markets.
- What
- Global market signals pointed to a weaker opening for India’s Sensex and Nifty 50, while oil prices rose amid renewed Middle East tensions.
- Where
- The developments involved Indian markets, Asian markets, Wall Street and the Middle East, including the Strait of Hormuz.
- When
- The cues were reported for Tuesday, 1 September, following Monday’s market close.
- Why
- Renewed US-Iran hostilities increased concerns about oil-supply disruptions, inflation, the rupee and external balances.
Key facts
- Gift Nifty
- Around 24,212, down nearly 33 points from the previous Nifty futures close.
- Sensex close
- 76,957.27 on Monday, down 307.24 points, or 0.40%.
- Nifty 50 close
- 24,080.40 on Monday, down 95.25 points, or 0.39%.
- Brent crude
- $91.05 a barrel, up 56 cents, or 0.6%, on Tuesday.
- WTI crude
- $86.59 a barrel, up 83 cents, or 1%.
- August US performance
- The S&P 500 gained 2.6%, the Nasdaq Composite 3.9% and the Dow Jones Industrial Average 1.3%.
- Strait of Hormuz
- Shipping data showed five visible commodity vessels passing daily over the weekend; the waterway previously handled about one-fifth of global oil supplies.
Quotes
Siddhartha Khemka
Head of Research, Wealth Management, Motilal Oswal Financial Services
“Indian equities are likely to maintain a cautious bias as renewed US-Iran tensions and rising crude prices weigh on sentiment.”
livemint.com
Sources
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