Gift Nifty Points to a Flat Start on Tuesday

Mumbai, Sept 7: Gift Nifty signalled a largely flat opening for Indian equities on Tuesday, with the index trading at 23,828, up marginally by 1.50 points, or 0.01 per cent, as of the last available intraday price, pointing to a subdued start for the Nifty when trade resumes at 9:15 am. The near-month Gift Nifty future, expiring September 29, had opened at 23,999.5 and touched an intraday high of the same level, before sliding through the session to a low of 23,806, tracking Monday’s weak close on Dalal Street before paring some of the losses. The October 27 contract, meanwhile, was flat at 23,917.50, up 0 points. The steady intraday slide through Monday’s session suggests traders remain cautious heading into Tuesday’s open, even as the headline print points to only a marginal move from the previous close. 

Asian Markets 

Asian stocks ended mixed on Monday, with Japan’s Nikkei 225 leading the region’s gainers, up 2.12 per cent, while Thailand’s SET index rose 1.46 per cent and Malaysia’s KLCI added 0.39 per cent. Pakistan’s KSE 100 and Australia’s All Ordinaries also closed higher, up 0.23 per cent and 0.05 per cent respectively, while mainland China’s Shanghai Composite edged up 0.07 per cent. Losses were concentrated in Hong Kong and Vietnam, with the Hang Seng falling 0.93 per cent and the HNX 30 down 1.54 per cent, the region’s steepest declines, while Indonesia’s Jakarta Composite slipped 0.25 per cent. The mixed close came even as crude oil prices continued to climb and investors weighed the risk of a wider Middle East conflict. 

Oil Prices  

Oil prices extended their gains on Monday, with WTI crude up 0.22 per cent to $91.68 a barrel and Brent crude rising 0.59 per cent to $96.85. Murban crude was the standout mover among major benchmarks, jumping 4.36 per cent to $107.80, while heating oil climbed 2.13 per cent and Mars crude rose 1.99 per cent to $110.80. Natural gas eased 0.94 per cent to $2.947 and the OPEC basket price slipped 0.81 per cent to $97.70, while gasoline dipped marginally by 0.26 per cent and WTI Midland was little changed at $93.28. 

Nifty, Sensex Decline as Elevated Oil, Fed Fears Scare Stocks 

Back home, Indian equity benchmarks declined on Monday, with the Nifty slipping below 23,800 and the Sensex losing nearly 383 points, as escalating Middle East tensions, elevated crude prices and growing expectations of a US rate hike weighed on risk appetite. Information technology stocks led the decline, while pharma was one of the few major sectoral indices to finish in the green. At close, the Sensex fell 382.62 points, or 0.50 per cent, to 76,132.81, while the Nifty 50 declined 118.55 points, or 0.50 per cent, to 23,779.15. Market breadth remained weak, with 1,931 shares advancing against 2,353 declining, while 190 stocks ended unchanged. The Nifty IT index was among the biggest sectoral losers, falling 2.3 per cent, as investors remained concerned about the impact of higher US interest rates on technology spending, with stronger-than-expected US jobs data released last week fuelling bets that the Federal Reserve could raise rates this month. Infosys was the biggest Nifty loser, followed by SBI Life Insurance, Tech Mahindra, Jio Financial Services and HDFC Life Insurance, with the weakness in IT stocks acting as a major drag on the benchmark indices. 

The Gift Nifty signal for Tuesday’s open is based on current macro and geopolitical conditions holding steady overnight. Should the Iran war, crude oil prices or global risk sentiment shift meaningfully before trade resumes at 9:15 am, the actual opening could differ materially from what Gift Nifty is currently indicating. 

Source

• NSEIX.com
• OilPrice.com