Gift Nifty Points to Flat-to-Weak Open for Sensex, Nifty on Thursday

Mumbai, Oct 29: Gift Nifty signals a flat-to-weak opening for Indian markets on Thursday, with the contract quoted 0.39 per cent lower. Global cues are mixed, but a Wall Street rally and cooler oil offer some support. 

Asian stocks are split on Thursday morning. Australia, Singapore and Malaysia are higher, while South Korea, Shenzhen and Taiwan are under pressure. 

US stocks ended higher on Wednesday, with the S&P 500 and Nasdaq each adding about 0.3 per cent. Investors welcomed a Federal Reserve that kept rates unchanged. 

Oil is cooling but remains elevated, with Brent at $114.63 a barrel after a 0.6 per cent dip. Wednesday’s climb above $115 on the Houthi attack on Ras Tanura still hangs over sentiment. 

The US Federal Reserve held rates at 3.75 to 4 per cent but two members voted for a hike. Traders now look to the European Central Bank and the Bank of Japan for the next policy cues. 

The Iran war remains in limbo. Tehran says Qatar’s latest mediation offered only unacceptable ideas, so a deal looks distant. 

The November Gift Nifty futures contract was quoted at 22,662.50 at 8:11 am IST, down 89.50 points, or 0.39 per cent, from its previous close. Against the Nifty 50’s Wednesday close of 22,698.85, the contract is at a discount of 36.35 points, or 0.16 per cent. It was also below the 22,727 level seen in Wednesday’s evening session. 

US Fed Decision 

The US Federal Reserve held its benchmark rate at 3.75 to 4 per cent on Wednesday, as expected, but two of the 12 voting members wanted an immediate 25 basis point hike. The central bank called inflation elevated and upgraded its view of the economy, while Chair Kevin Warsh said he sees no need to slow growth to curb prices. Markets now price in about an 85 per cent chance of a December hike, and investors will watch the European Central Bank on Thursday and the Bank of Japan on Friday, both expected to hold. 

Asian & US Markets

Asian markets were mixed on Thursday morning. Malaysia rose 0.61 per cent to 1,623.71, Singapore gained 0.52 per cent to 5,425.84 and Australia’s ASX 200 added 0.37 per cent to 8,879.90, while Hong Kong’s Hang Seng and Japan’s Nikkei 225 were nearly flat. South Korea’s Kospi fell 2.39 per cent to 5,868.66, China’s Shenzhen index slid 2.23 per cent to 11,217.67, Taiwan lost 1.42 per cent and the Shanghai Composite eased 0.69 per cent. Thailand’s SET index was unchanged at 1,566.10. 

US stocks ended higher on Wednesday, with the S&P 500 rising 0.28 per cent to 7,743.98, the Nasdaq Composite adding 0.27 per cent to 26,549.85 and the Dow Jones Industrial Average gaining 0.19 per cent to 52,475.10. The Nasdaq 100 climbed 0.55 per cent and the Russell 2000 rose 0.41 per cent. Transport stocks fell 2.46 per cent and utilities lost 1.08 per cent, while the VIX volatility index declined 3.48 per cent to 16.91. 

Oil 

Brent crude eased 0.60 per cent to USD 114.63 a barrel on Thursday, while West Texas Intermediate (WTI) fell 1.01 per cent to USD 101.74. The dip follows a rise of more than 1 per cent on Wednesday to above USD 115 after a Houthi attack on Saudi Arabia’s Ras Tanura refinery. Prices remain elevated, which means a bigger import bill, a weaker rupee and stubborn inflation for India, a major crude importer. 

Iran War 

Qatari mediators presented Iran with a new draft deal on Sunday, proposing a seven-day timeline of daily confidence-building steps, with a response expected by the end of the week. A senior Iranian official said Doha had offered only unacceptable ideas, and that Tehran’s no-flexibility policy on the nuclear issue is unchanged. Foreign Minister Abbas Araqchi said Tehran remains in close contact with intermediaries and that its own seven-day plan could be implemented in under a week. Washington wants the nuclear programme on the table from the outset, while Iran wants the US blockade and oil sanctions lifted first, leaving the eight-month war in limbo. 

Indian Markets on Wednesday 

The Sensex fell 352.64 points, or 0.48 per cent, to close at 73,246.03 on Wednesday, while the Nifty 50 declined 50.90 points, or 0.22 per cent, to 22,698.85. IT and oil and gas stocks led the losses, with the Nifty IT and Nifty Oil & Gas indices each down about 2 per cent, and Infosys, HCL Technologies, Reliance Industries and ONGC among the laggards. Auto, consumer durables, media and pharma indices rose about 1 per cent each, while Apollo Hospitals, Larsen & Toubro and Trent were among the top gainers. Broader markets outperformed, with the Nifty Midcap index up 0.4 per cent and the Nifty Smallcap index up 0.9 per cent. 

Source

• nseindia.com