Gift Nifty Points to Flat Start for Sensex and Nifty After Sharp Sell-Off

Mumbai, Sept 28: Gift Nifty futures point to a flat opening for Indian markets on Tuesday at 9:15 am, after the Sensex and Nifty closed sharply lower on Monday as crude oil surged on the deadlock over the Strait of Hormuz. The September Gift Nifty contract was quoted at 22,835.50, up 11 points, or 0.05 per cent. That is a premium of about 55 points to the Nifty’s close of 22,780.25. 

Gift Nifty Trades Well Below Day’s Open 

The near-month contract, dated September 29, opened at 23,172, touched a high of 23,175.50 and a low of 22,792.50, leaving it 336.50 points below its opening level. The October contract, dated October 27, was quoted at 22,892.50, up 16.50 points, or 0.07 per cent. The Nifty closed just below the 22,800 mark on Monday, so Tuesday’s open will show whether the index can stabilise after the sell-off. 

Asian Stocks Mostly Lower 

Asian markets were mostly lower on Monday. China’s Shenzhen index dropped 3.44 per cent to 12,858.75, the Shanghai index lost 1.67 per cent to 3,823.62 and South Korea’s KOSPI fell 2.70 per cent to 6,889.74, while the SGX-CNBC China Growth index declined 1.73 per cent to 1,489.11.
Japan’s Nikkei 225 slipped 0.73 per cent to 65,877.62, Taiwan lost 0.28 per cent to 48,024.60, Thailand’s SET index eased 0.33 per cent and Malaysia’s benchmark lost 0.10 per cent. Hong Kong’s Hang Seng gained 0.54 per cent to 24,642.51, Australia’s ASX 200 rose 0.17 per cent to 8,679.70, Singapore’s Straits Times index added 0.31 per cent to 5,729.02 and New Zealand’s NZX 50 rose 0.14 per cent to 13,830.68. 

Oil Jumps  

Brent crude rose USD 4.20, or 4.03 per cent, to USD 108.52 a barrel, while West Texas Intermediate gained USD 3.85, or 4.17 per cent, to USD 96.26, according to delayed quotes. Murban crude surged 7.35 per cent to USD 121.43 and heating oil rose 3.56 per cent to USD 4.851. The OPEC basket, on a four-day delay, stood at USD 114.53, up 6.35 per cent. Higher oil is a concern for India, the world’s third-largest crude importer, as it can widen the import bill, add to inflation and squeeze corporate margins. 

Trump Rejects Iran Peace Plan 

US President Donald Trump has rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting, saying Tehran wants a deal because it is losing badly. Foreign Minister Abbas Araqchi said only a negotiated solution can end the deadlock. US envoy Mike Waltz said the plan was turned down because it demanded immediate sanctions relief and the release of frozen assets, but Trump told Axios he expects more talks this week. The war, which began on February 28 with US and Israeli strikes, has drawn in Saudi Arabia, where Houthi advances in Yemen threaten Red Sea oil exports. 

Indian Markets Close Sharply Lower 

The Sensex plunged 1,124.02 points, or 1.52 per cent, to 72,771.72 on Monday, while the Nifty declined 360.25 points, or 1.56 per cent, to 22,780.25. Market breadth was sharply negative, with 1,214 shares advancing, 2,905 declining and 166 unchanged. Every sectoral index ended in the red: the Nifty PSU Bank index fell around 3 per cent and the Telecom index shed 2 per cent, while the Energy, Infrastructure, FMCG, Realty, Private Bank, Metal and Oil & Gas indices declined more than 1 per cent each. The Nifty Midcap index fell 1.7 per cent and the smallcap index 1.8 per cent. Jio Financial Services (JIOFIN), Tata Motors Passenger Vehicles (TMPV), Tata Consumer Products (TATACONSUM), Adani Enterprises (ADANIENT) and Adani Ports (ADANIPORTS) were the biggest Nifty losers, while Dr Reddy’s Laboratories (DRREDDY) and Infosys (INFY) were among the few gainers. Foreign investors net sold shares worth Rs 3,694 crore on Friday, taking September outflow to about USD 1.8 billion, according to provisional data. 

Source

• nseix.com