Dalal Street Set for Positive Start as Shares Rise at Pre-open on Oil Drop, Global Rally 

Mumbai, May 21:Shares traded higher at pre-open suggesting a positive start for benchmark indices as an encouraging drop in oil prices lifted sentiment as US and Iran showed signs of a peace deal around the corner.

Nifty 50 traded 0.55% higher at pre-open while the Sensex went up 0.42%.

Gift Nifty futures also showed an uptrend, trading at 23,797 which is significantly above Nifty’s previous close of 23,659.

Brent crude showed a drop trading at $105.8 per barrel while WTI was seen at $99.11.

Spotlight will fall on stocks such as Grasim Industries and Ola Electric, which have reported results. The two-wheeler maker Ola Electric narrowed its quarterly loss by curbing costs while Grasim also narrowed losses.

As for global shares, Asian markets rallied sharply, taking cues from Wall Street’s overnight rebound and strong earnings-driven momentum in technology stocks.

Japan’s Nikkei jumped 3.6%, while South Korea’s Kospi soared 7.29%, as investors rushed back into risk assets. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 2.53%, supported by gains in semiconductor and AI-linked counters. Hong Kong’s Hang Seng index also edged 0.14% higher.

Technology shares remained at the centre of the rally after Nvidia’s latest earnings reinforced confidence in the strength of the global artificial intelligence boom. In South Korea, Samsung Electronics gained over 6% after a tentative wage agreement helped avert a major strike, lending further support to regional chip and technology stocks.

U.S. equities ended firmly higher overnight, led by gains in technology and semiconductor companies. The Nasdaq advanced 1.5%, while the S&P 500 rose 1.1%, as investors resumed buying in AI-linked names after recent volatility.

Sentiment was also aided by signs that tensions involving Iran may not escalate immediately, easing fears of a prolonged disruption to global energy supplies.

The positive momentum extended to Europe, where the pan-European STOXX 600 index rose 1.5% to a near two-week high. Semiconductor and technology-related shares led the advance, with Dutch chip equipment maker ASML surging nearly 7%.

European investors were also encouraged by expectations that demand for AI infrastructure and advanced chips would remain resilient despite concerns over slowing global growth and elevated interest rates.

Source:

• Exchanges