Gift Nifty Points to Higher Open for Sensex, Nifty as Asia Gains, Hormuz Diplomacy Advances

Mumbai, Aug 28: Indian equity benchmarks looked set to open marginally higher on Friday, tracking a broadly positive session across Asian markets and a mixed close on Wall Street overnight, as easing oil prices and a diplomatic push to reopen the Strait of Hormuz added to the improving mood. Qatar’s prime minister travelled to Tehran on Thursday and pressed Iranian officials to respect freedom of navigation through the strait, after which Tehran agreed to draw up a list of conditions to restore normal shipping traffic. That easing in geopolitical tension, combined with Brent crude holding below $90 a barrel, offered some support for Indian markets even after two straight sessions of losses domestically. 

The mood was buoyed by a stronger Asian session on Friday morning, with Japan’s Nikkei and Hong Kong’s Hang Seng both advancing, while Wall Street’s Thursday session ended mixed, with technology stocks driving the Nasdaq sharply higher even as other gauges lagged behind. Indian benchmarks, coming off a two-day losing streak, are drawing modest support from this backdrop of cooling oil prices and diplomatic progress on Hormuz, even as caution about the broader Iran war persists. 

Gift Nifty Figures 

The Gift Nifty futures contract expiring September 29 was last at 24,260.50, up 41.50 points, or 0.17 per cent, as of 8:23 am IST on Friday. The move places the near-month contract comfortably above Thursday’s Nifty 50 close of 24,090.85, a premium of nearly 170 points. The modest gain points to Indian benchmarks opening in positive territory, though well short of a decisive breakout from Thursday’s weak finish. 

Asian Markets on Friday Morning 

Asian markets were broadly higher on Friday morning, extending gains across most regional benchmarks. Japan’s Nikkei 225 jumped 550.90 points, or 0.83 per cent, to 66,682.88, while Indonesia’s JSX Composite surged 1.81 per cent to 6,521.75 and Hong Kong’s Hang Seng added 0.13 per cent to 25,598.91. China’s Shanghai Composite also edged up 0.15 per cent to 3,962.66, though Malaysia’s FTSE Bursa Malaysia KLCI and Pakistan’s KSE 100 bucked the trend with modest declines. 

How US Markets Ended on Thursday 

US markets ended mixed on Thursday, with technology stocks driving a sharp rally on the Nasdaq even as broader gauges showed more modest moves. The Nasdaq Composite jumped 411.15 points, or 1.57 per cent, to 26,541.35, while the S&P 500 added 55.29 points, or 0.72 per cent, to 7,730.99. The Dow Jones Industrial Average rose a comparatively modest 105.56 points, or 0.20 per cent, to 53,569.44, while the NYSE Composite slipped 0.38 per cent, underscoring the tech-heavy nature of Thursday’s gains. Canada’s S&P/TSX Composite edged up 0.06 per cent, while Mexico’s S&P/BMV IPC fell 0.55 per cent. 

Oil Prices 

Brent crude was trading near $89.54 a barrel, down about 0.18 per cent, while US West Texas Intermediate slipped 0.22 per cent to $83.35, holding a steadier footing after recent volatility. Prices found some support from lingering uncertainty over the Strait of Hormuz even as diplomatic progress builds, while Murban crude, the Abu Dhabi benchmark, fell a sharper 0.79 per cent to $93.03. The OPEC Basket price dropped more sharply still, down 4.31 per cent to $86.39, reflecting mixed signals across different crude grades. 

Iran War 

Iran war mediators placed renewed emphasis on reopening the Strait of Hormuz, with Tehran agreeing to draw up a list of conditions to restore normal shipping traffic after Qatar’s prime minister pressed Iranian officials in Tehran to respect freedom of navigation. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Iran had agreed with Oman on a shipping corridor through the strait, with ships expected to use a designated central channel if the US met Iran’s conditions. US military commanders said American forces have cleared sea mines laid by Iran’s Revolutionary Guards, with Admiral Brad Cooper of Central Command saying international shipping lanes are open and momentum is building. Even so, ship tracking services estimate traffic through the strait remains at just 5 to 15 per cent of normal volumes, with the UN’s International Maritime Organization reporting 70 incidents in the strait since the war began that have killed 19 seafarers. 

How Indian Markets Ended on Thursday 

Indian benchmarks ended lower for a second consecutive session on Thursday, with the Sensex falling 539.35 points, or 0.70 per cent, to 76,933.59 and the Nifty 50 declining 116.90 points, or 0.48 per cent, to 24,090.85, as broad-based selling in metals, oil and gas, auto and FMCG stocks outweighed gains in pharma and consumer durables. Hindalco Industries was among the biggest losers in the metals space, while Mahindra & Mahindra led declines among auto stocks, as investors stayed cautious amid global growth and commodity-market concerns. Market breadth stayed weak, with 2,392 stocks declining against 1,736 advancing on the NSE. Pharma and consumer durables bucked the trend, with both sectoral indices rising nearly one per cent as investors rotated toward more defensive, resilient stocks amid the broader risk-off sentiment. 

Source

•  nseindia.com
• OilPrice.com