GIFT Nifty Opens Marginally Weak; Sideways Trade Expected During Sessions

Mumbai, April 10: GIFT Nifty was trading at 23,919.50 at around 8:48 am in early trades on Friday session down by 58 points or 0.24 per cent. Indian markets open marginally weak today as investors are likely to remain on the sidelines amid volatile trade after mixed global cues and rising geopolitical tensions between Iran and US.

US President Donald Trump on Thursday called on Iran to stop charging tolls for tankers to pass through Strait of Hormuz. Separately, Iran’s supreme leader Ayatollah Ali Khamenei vowed that Iran will control the strategic Strait of Hormuz. The fragile truce agreed between the US and Iran on Thursday is coming under increasing pressure with each passing day even as the rivals are set to hold peace talks in Islamabad on Saturday.

The Strait of Hormuz, which sits off Iran’s southern coast, is a critical chokepoint for oil shipments and for the smooth functioning of the global economy. “They are charging fees to tankers going through the Hormuz Strait — They better not be and, if they are, they better stop now!” Trump said on his Truth Social media platform.

Oil Prices Up

Oil prices jumped in early trading on Friday after attacks on Saudi energy facilities, also as markets assessed risk premium related to the possible reopening of the Strait of Hormuz after remaining shut for days. Brent crude futures were at $96.75 a barrel, up 83 cents, or 0.87%, by 0100 GMT. U.S. West Texas Intermediate futures rose $1.04 or 1.06% to $98.91 a barrel.

Geopolitical risk in the form of rising crude prices could keep market sentiment weak. Oil-intensive sectors like aviation, paints and OMCs are expected to come under pressure, while IT and pharma shares are likely to be relative outperformers due to their defensive nature and overseas revenues.

Market Gains Erased

Indian stock markets plunged on Thursday on fears of escalation in geopolitical tensions after Iran and the US traded sharp verbal attacks just days before the rivals plan to hold peace talks in Islamabad on Saturday. Fresh concerns erased gains from earlier in the week when markets rose on hopes of easier monetary policy after the RBI kept interest rates unchanged. The S&P BSE Sensex tanked 931.25 points or 1.20 per cent to 76,631.65 while the Nifty 50 dived 222.25 points or 0.93 per cent to 23,775.10.

Source: https://www.nseindia.com/