Stock Markets Today: Markets Set to Open Marginally Lower on Friday; Gift Nifty Down 33 points

Mumbai, May 8: Indian markets are likely to open on the downside on Friday following a weak and cautious start overseas. Fears of fresh hostilities between the United States and Iran struck sentiment across global markets overnight after the two countries exchanged fire late on Thursday night near the Strait of Hormuz. Reiterating that ceasefire is still on, US President Donald Trump said Iran “trifled with us today”, threatening an already shaky truce between the two nations after they fired on each other Thursday night in response to Iranian attack earlier that day.

Gift Nifty

India Gift Nifty Futures are trading 33.50 points or 0.14 per cent lower at 24,257.50 at 7.57 am. The negative start by Gift Nifty indicates that Nifty 50 is likely to open in the negative territory when trade resumes on Friday morning. As it stands now, the Nifty 50 may open at around 24,260 and slide lower further during the day’s trading session.

Middle East Conflict 

The latest flare-up came a day after Iran’s foreign ministry had indicated it was considering a US proposal to end the war, raising hopes of a diplomatic breakthrough. However, Iran’s top military command alleged that the US had targeted an Iranian oil tanker and another vessel approaching the Strait of Hormuz and carried out aerial attacks on several coastal areas including Bandar Khamir, Sirik, and Qeshm Island. The US Central Command described the Iranian attacks as unprovoked, saying Iranian forces launched multiple missiles, drones, and small boats at US Navy guided-missile destroyers transiting the strait, and that it had eliminated inbound threats and targeted Iranian military facilities in response. Trump subsequently said the ceasefire was still in place, but the exchange has significantly clouded prospects for a swift resolution and the reopening of the Strait of Hormuz.

Asian Markets

Asian markets traded in the red on Friday morning as escalating tensions between Iran and the US dampened trade activities across the region. Japan’s Nikkei 225 index was down 1.05 per cent at 62,174.12. Hong Kong’s Hang Seng Index shed 1.11 per cent to trade at 26,330.03. Australia’s ASX All Ordinaries dropped 1.61 per cent to 8,960.10 at the time of writing. Indonesian JSX Composite bucked the regional trend, rising 1.15 per cent while Pakistan KSE 100 advanced 0.69 per cent.

US Markets

US markets finished in the red on Thursday as escalating geopolitical tensions between Iran and the US rose for the first time since Tehran and Washington struck a truce Thursday night. The Dow Jones Industrial Average lost 313.62 points or 0.63 per cent at 49,596.97. The S&P 500 declined 0.38 per cent to 7,337.11 while Nasdaq Composite eased 0.13 per cent to close Thursday’s trade at 25,806.20. NYSE Composite led the decline among major US indices, falling 1.17 per cent to 23,011.31.

Oil Prices Up

Oil prices rose more than 1 per cent on Friday after the renewed exchange of fire between the US and Iran threatened the fragile ceasefire and dashed hopes of a full reopening of the Strait of Hormuz. Brent crude futures were up $1.41 or 1.41 per cent at $101.47 a barrel as of 0123 GMT, while West Texas Intermediate rose $1.12 or 1.18 per cent to $95.93 a barrel, snapping three consecutive days of declines. For the week, however, both contracts remained on track to fall around 6 per cent, reflecting the sharp retreat earlier in the week when prospects of a US-Iran deal had briefly lifted sentiment.

Thursday Session

Indian markets ended little changed on Thursday after a volatile session, with the Sensex edging down 114 points or 0.15 per cent to settle at 77,844.52 and the Nifty 50 slipping just 4.30 points or 0.02 per cent to close at 24,326.65. Gains in auto, defence, and capital goods stocks — led by strong earnings from Bharat Forge, Bajaj Auto, and Mahindra & Mahindra — countered profit-booking in IT and FMCG following the sharp rally in the previous session. The broader market outperformed frontline indices, with midcap and smallcap indices gaining 1.1 per cent and 0.87 per cent respectively, reflecting sustained appetite for domestic growth-oriented sectors.

Source: 

• nseindia.com