Gift Nifty Points to Firm Open for Sensex, Nifty as Asian Stocks Rise, Wall Street Rebounds Partially

Mumbai, Sept 3: Indian equity benchmarks are set for a positive-to-firm opening on Thursday, tracking a broad rise across Asian markets and a partial rebound on Wall Street, even as the Iran-US conflict continues to simmer in the background. Gift Nifty futures pointed to gains at the 9:15 am open, holding above Wednesday’s Nifty close despite the overnight escalation in the Middle East. 

Gift Nifty futures expiring September 29 were trading at 24,117.00, up 20.50 points, or 0.09 per cent, as of 8:26 am IST on Thursday. The contract held at a premium of more than 200 points to Wednesday’s Nifty 50 close of 23,914.45, when the index had settled 141.35 points, or 0.59 per cent, lower. The firm undertone in Gift Nifty suggests the domestic market could open with gains, reversing part of Wednesday’s Iran-driven selloff. 

Iran War Update 

Iran’s health minister said 18 people were killed and 108 wounded in Tuesday night’s US strikes across the country, with the Iranian Red Crescent reporting four dead and 67 wounded in a strike near a wedding close to the Strait of Hormuz. Tehran retaliated with missile and drone attacks on US assets in Bahrain, Jordan, Kuwait and Iraq, with Kuwait’s army reporting further intercepted attacks early Thursday. President Donald Trump has threatened further military action, but aides are reportedly pushing to keep the war from escalating before November’s midterm elections, with the White House said to be weighing more aggressive options only after the November 3 vote. United Nations Secretary-General Antonio Guterres called for an immediate end to the hostilities, citing alarm over the rising civilian toll. 

Asian Stocks 

Asian equities rose broadly on Thursday morning as investors took comfort from a pause in the global bond selloff and easing worries over an imminent Fed rate hike, after New York Fed President John Williams said he saw no clear-cut case for higher interest rates. Hong Kong’s Hang Seng gained 0.42 per cent to 25,418.57, while Malaysia’s FTSE Bursa Malaysia KLCI rose 0.78 per cent and Indonesia’s Jakarta Composite added 0.59 per cent. Japan’s Nikkei 225 edged up 0.20 per cent as domestic bond yields eased from Wednesday’s three-decade high. Thailand’s SET and Pakistan’s KSE 100 were the outliers, falling 0.86 per cent and 0.96 per cent, respectively. 

Wall Street 

Wall Street ended firmly higher on Wednesday, with the Dow Jones Industrial Average climbing 295.07 points, or 0.56 per cent, to 53,061.95, the Nasdaq Composite up 0.45 per cent at 26,217.83, and the S&P 500 adding 0.46 per cent to close at 7,666.60. The rebound came on three counts: Bond yields took a breather after a week of relentless selling; Nvidia, now part of the Dow, gained more than 3 per cent after strong results from Dell signalled that AI hardware spending extends beyond the largest technology firms, with reports also pointing to Nvidia nearing a deal to acquire AI startup Hugging Face; and crude oil failed to make a rapid run toward the 100-dollar mark despite Iran’s retaliatory threats, with Brent crude holding near 95 dollars a barrel after touching 96 dollars earlier in the day. 

Oil Prices 

Oil prices were little changed on Thursday morning, with Brent crude down marginally at 95.60 dollars a barrel and WTI crude up 0.18 per cent at 91.17 dollars. Murban crude eased 0.05 per cent to 106.10 dollars. Prices held broadly steady even as Iran continued to threaten tankers transiting the Strait of Hormuz without its authorisation, a waterway that carried a fifth of the world’s oil supply before the war. 

Indian Markets on Wednesday 

Indian benchmarks had ended lower on Wednesday, with the Sensex falling 373.93 points, or 0.49 per cent, to 76,570.35 and the Nifty declining 141.35 points, or 0.59 per cent, to 23,914.45, as selling in auto and information technology stocks weighed on sentiment amid the Iran-US hostilities. Auto stocks led the decline, with Eicher Motors, Bajaj Auto and Mahindra & Mahindra among the top losers, while the Nifty IT index fell 1.2 per cent, dragged by Wipro. Energy and Oil & Gas were the only sectors to close in the green, led by Coal India, Adani Ports and Adani Enterprises, as elevated crude prices lifted the segment. Market breadth remained weak, with 2,323 stocks declining against 1,827 advancing and 191 unchanged. 

Source

• nseindia.com