Gift Nifty Points to Flat Start On Friday

Mumbai, Sept 3: Gift Nifty signalled a muted start for Indian equities on Friday, with the index trading at 23,925.5, down 7 points, or 0.03 per cent, as of the last available intraday price, pointing to a flat-to-slightly-lower opening for the Nifty when trade resumes at 9:15 am. The near-month Gift Nifty future had opened at 24,111.5 and touched an intraday high of 24,129, before slipping through the session to a low of 23,906, tracking overnight weakness in global markets amid the escalating Iran war and firmer crude oil prices. The October Gift Nifty future was little changed at 24,057.50, while the September contract slipped 10.5 points, or 0.04 per cent, to 23,922.

Iran War Escalation Keeps Markets On Edge

The Iran war escalated sharply this week after Iranian officials said 18 people were killed and 108 wounded in Tuesday night’s US strikes, including four dead at a wedding near the Strait of Hormuz. Iran retaliated with missile and drone strikes on US assets in Bahrain, Jordan, Kuwait and Iraq, intercepted by Kuwaiti air defences early Thursday. The exchange marks the most serious flare-up since fighting had largely paused after a round of strikes in July. United Nations Secretary-General Antonio Guterres said he was alarmed by reports of civilian casualties and called for an immediate halt to the fighting, while US officials disputed Iran’s casualty figures. With Iran also threatening tankers transiting the Strait of Hormuz without its authorisation, a route that carried roughly a fifth of the world’s oil supply before the war, traders have kept a close watch on the risk to crude flows.

Asian Markets End Mixed On Thursday

Asian stocks ended mixed on Thursday, with gains in Southeast Asia offset by weakness across Northeast and South Asian bourses. Indonesia’s Jakarta Composite led regional gainers, rising 1.09 per cent, while Australia’s All Ordinaries added 0.41 per cent and Malaysia’s KLCI gained 0.37 per cent. Japan’s Nikkei 225 slipped 0.17 per cent, Hong Kong’s Hang Seng fell 0.39 per cent, and Pakistan’s KSE 100 dropped 0.96 per cent, the region’s biggest decliner. China’s Shanghai Composite and Thailand’s SET index were both little changed.

Oil Prices Extend Gains

Oil prices extended their advance, with the renewed US-Iran hostilities stoking fresh concerns over supply disruptions through the Strait of Hormuz. WTI crude rose 2.1 per cent to $92.92 a barrel, while Brent crude climbed 1.8 per cent to $97.35 a barrel. The OPEC basket price jumped 3.12 per cent to $98.29, and Murban crude was little changed at $106.00. Natural gas, gasoline and heating oil futures also edged higher.

Sensex, Nifty End Lower On Thursday

Back home, the Sensex and Nifty ended lower on Thursday after a volatile session, as selling in IT, FMCG, auto and pharma stocks offset gains in realty and banking shares. The Sensex fell 417.49 points, or 0.55 per cent, to 76,152.86, while the Nifty declined 41 points, or 0.17 per cent, to 23,873.45. Both indices opened firm, tracking positive global cues, with the Sensex up more than 350 points and the Nifty briefly reclaiming 24,000, before the gains gave way to selling amid elevated crude prices, geopolitical tensions and rate uncertainty. Thursday’s fall extended a three-session losing streak through Wednesday. Nifty Realty was the top gainer, up 2.5 per cent, followed by Media, up 1.7 per cent, while Private Bank and PSU Bank indices added around 0.5 per cent each. Auto, FMCG, IT and pharma indices each ended around 0.5 per cent lower. On the NSE, 2,453 stocks advanced against 1,686 decliners and 178 unchanged, suggesting broader market resilience even as the headline indices slipped.

The Gift Nifty signal for Friday’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:

• NSE GIFT City, Reuters, OilPrice.com