Indian Markets To Open Flat; Gift Nifty Slightly Red 

Mumbai, April 21: Indian stocks likely to open flat to mildly weak on Tuesday tracking mixed global cues as investors choose to tread cautiously in the wake of developments in the Middle East peace process. Markets ended flat on Monday and will likely remain rangebound until Iran peace talks sees more concrete developments.

At 08: 39 am on Tuesday, April 21, Gift Nifty futures for the April 28 contract were trading at 24,408.50 down by 32 points or 0.13% from its previous close. The small dip in price suggests that bulls and bears on Dalal Street are currently evenly matched and don’t expect a strongly directional open for Indian markets today. Since Nifty ended Monday just about even near the 24,400 zone, a reading of 24,408.50 on Gift Nifty translates to an opening that is flat with a mild downside bias. Put simply, Indian markets will open and trade sideways in a wait-and-watch session today.

Middle East Conflict

The Iran ceasefire situation showed tentative signs of thawing overnight, though uncertainty remains firmly in play. Iran is reportedly considering attending peace talks with the United States in Pakistan, with a senior Iranian official telling Reuters that Islamabad has been working to end the US blockade of Iranian ports — a key obstacle to Tehran rejoining diplomatic efforts before the two-week ceasefire expires this week. However, Iranian Foreign Minister Abbas Araqchi cautioned that continued ceasefire violations by the US remain a major obstacle to diplomacy, while Iran’s top negotiator Mohammad Baqer Qalibaf accused President Trump on social media of increasing pressure through the blockade. The ceasefire, which has held the fragile peace in a conflict that has killed thousands and roiled global energy markets, is set to expire imminently — making this week’s diplomatic moves pivotal for markets worldwide.

Oil Prices

Oil prices declined on Tuesday as hope for peace talks eased fears of a supply crunch. Brent crude futures fell about 1% to $94.53 a barrel while US West Texas Intermediate dropped 1.72% to $88.07 amid expectations that Pakistan may broker a deal between Washington and Tehran allowing more Middle East supply to flow into markets soon.

Asian Markets

Asian stocks were mixed overnight in another cautious reaction to the Iran ceasefire news overnight. Nikkei and Asia were mixed and trading nowhere with conviction as Asian investors processed positive and negative commentary from Tehran and Washington with typical aplomb. The lack of direction in Asian markets explains the current flat reading on Gift Nifty futures — Tuesday is likely to be a domestic event-driven session for Indian markets.

Monday Closing

Indian markets ended flat on Monday despite inching higher during the day. The Sensex on Monday ended at 78,520.30, up 26.76 points or 0.03%. Markets rose mildly on Monday after the RBI partially rolled back restrictions on foreign exchange derivatives that it had implemented on April 1 to contain the rupee’s slide to record lows.

Source:

• nseindian.com