Gift Nifty Points to Green Start for Sensex, Nifty as Iran’s Hormuz Offer Eases Oil

Mumbai, Oct 19: Indian equity markets are set for a positive start on Monday, with Gift Nifty futures in the green ahead of the opening bell. Easing crude prices and Iran’s renewed push to reopen the Strait of Hormuz are supporting sentiment. 

Gift Nifty’s October 27 contract was at 23,124.00 at 8:11 am IST, up 59.00 points or 0.26 per cent. That is about 22 points below the Nifty 50’s Friday close of 23,146.15, so the early signal is positive but muted. 

Iran’s Foreign Minister Abbas Araqchi said on Sunday that Tehran’s offer to reopen the Strait of Hormuz within seven days remains on the table. Brent crude fell 1.65 per cent to USD 108.05 per barrel, though prices remain elevated. 

Asian markets are mixed this morning, with Japan’s Nikkei 225 down 1.21 per cent and Taiwan down 1.69 per cent. Wall Street ended sharply lower on Friday, with the Nasdaq Composite falling 2.15 per cent. 

Bank earnings add a note of caution. ICICI Bank Ltd (ICICIBANK) and Axis Bank Ltd (AXISBANK) reported profit growth of 20.1 per cent and 37.6 per cent, but HDFC Bank Ltd (HDFCBANK) managed only 4.7 per cent, and both ICICI Bank and HDFC Bank reported lower sequential margins. 

Gift Nifty Levels 

Gift Nifty futures for the October 27 contract were quoted at 23,124.00 at 8:11 am IST, a gain of 59.00 points or 0.26 per cent from the previous close. The Nifty 50 ended Friday at 23,146.15 and the Sensex at 74,729.27, so the futures are pricing a start close to Friday’s close and not a sharp gap-up. Traders will watch whether the Nifty 50 can hold above 23,100, a level it closed above on Friday. Among lenders, ICICI Bank’s profit rose to Rs 14,843 crore, Axis Bank’s to Rs 7,003 crore and HDFC Bank’s to Rs 19,510 crore, though HDFC Bank’s treasury gains fell 67 per cent to Rs 780 crore. Bank stocks may move. 

Oil Prices 

Brent crude fell USD 1.81, or 1.65 per cent, to USD 108.05 per barrel, while West Texas Intermediate (WTI) lost USD 0.73, or 0.72 per cent, to USD 100.68, according to OilPrice.com data. The gap between the two benchmarks was USD 7.37 per barrel, while Murban crude bucked the trend, rising 3.08 per cent to USD 113.36. With both benchmarks still above USD 100, inflation, the import bill and the rupee remain in focus for India. 

Iran War 

Araqchi, speaking in Baghdad, said the seven-day proposal presented to the US in mid-September, after an interim ceasefire collapsed, is still on the table. Iran’s conditions include lifting the US blockade on its ports, lifting US sanctions on its oil exports and ending hostilities on all regional fronts. He said the strait could reopen within six days of Washington accepting them, with talks resuming the following day. The main disagreement is the US insistence on addressing Iran’s nuclear programme first, and the strait carried about a fifth of global oil and LNG trade before the eight-month war. 

Asian Markets 

Asian markets traded mixed on Monday morning. Japan’s Nikkei 225 fell 1.21 per cent to 64,534.03 and Taiwan dropped 1.69 per cent to 46,315.09, while New Zealand’s NZX 50 lost 0.73 per cent, Malaysia slipped 0.59 per cent and China’s Shenzhen Component eased 0.26 per cent. Australia’s ASX 200 rose 0.28 per cent to 8,831.50, the Shanghai Composite gained 0.13 per cent to 3,721.15 and Singapore’s Straits Times index added 0.08 per cent to 5,419.77. South Korea’s Kospi was marginally lower by 0.06 per cent at 5,664.79, while Thailand’s SET was unchanged at 1,573.01. 

US Markets 

Wall Street ended lower on Friday, with the Nasdaq Composite bearing the brunt of the sell-off. The Nasdaq fell 2.15 per cent to 26,140.03, the S&P 500 lost 1.09 per cent to 7,659.44 and the Dow Jones Industrial Average slipped 0.34 per cent to 52,002.41. The VIX volatility index jumped 21.45 per cent to 19.99, while the Nasdaq 100 dropped 2.50 per cent and the Russell 2000 fell 1.66 per cent. 

Friday’s Close 

The Sensex rose 413.66 points, or 0.56 per cent, to 74,729.27, and the Nifty 50 gained 148.80 points, or 0.65 per cent, to 23,146.15, extending gains to a second straight session. A strong rally in IT stocks led the move, with the Nifty IT index up 3.92 per cent, while lower US Treasury yields and SEBI’s decision to reverse its closing-auction plan for derivatives settlement also helped. Market breadth was positive, with 2,221 shares advancing, 1,791 declining and 185 unchanged. Elevated crude prices and inflation concerns remained the key headwinds.