Gift Nifty Points to Muted Opening for Indian Markets as US and Iran Explore Phased Hormuz Deal

Mumbai, Sept 25: Indian markets are likely to open muted on Friday, with Gift Nifty hovering near the flatline after a slide in the cash market, on reports of a possible phased deal between Washington and Tehran to reopen the Strait of Hormuz and lift the US blockade. Saudi Arabia, Turkey and Pakistan are also set to meet under their joint defence pact over Houthi attacks on the kingdom, even as Tehran distances itself from its allies. Asian stocks are mostly lower on Friday morning, while the Nasdaq 100 ended marginally positive on Thursday even as the NYSE Composite and the S&P 500 slipped. 

Gift Nifty Levels 

Gift Nifty futures for the September 29 expiry were at 23,087.00, down 18.50 points, or 0.08 per cent, as of 8.03 am IST on Friday, pointing to a flat opening. The contract stood at a premium of 23.90 points to the Nifty’s Thursday close of 23,063.10. The modest premium, after Thursday’s 380-point Nifty slide, suggests investors are not yet pricing in a strong rebound. 

Iran War 

US and Iranian negotiators in New York are exploring a phased arrangement in which Tehran would reopen the Strait of Hormuz and Washington would lift its economic blockade of Iran, sources close to the talks told Reuters, though neither side wants to give up its leverage first. A senior Iranian official said Tehran was willing to defer its demand for transit fees on the strait to a side agreement while a White House official said Iran was “desperate” but Trump held all the cards. Saudi Arabia, Turkey and Pakistan are set to meet under their Mecca Joint Defence Agreement after the Houthis fired dozens of missiles and drones at Saudi targets, prompting emergency alerts in Mecca, Jeddah and Yanbu. Iranian President Masoud Pezeshkian sought to distance Tehran from the escalation, telling Fox News “the Houthis are responsible for their own actions,” a day after his UN General Assembly address. 

Asian Markets Friday Morning 

Asian markets were mostly lower on Friday morning, with Hong Kong’s Hang Seng down 1.69 per cent at 24,343.68, Shenzhen off 2.34 per cent and the Shanghai Composite down 1.22 per cent to 3,888.37. Australia’s ASX 200 slipped 0.49 per cent to 8,659.10, Singapore’s STI eased 0.06 per cent and Malaysia and Thailand were little changed. South Korea’s Kospi and Japan’s Nikkei bucked the trend, rising 0.90 per cent and 1.23 per cent respectively, the Nikkei up 804.15 points. India’s Nifty 50 was unchanged from Thursday’s close of 23,063.10, in line with Gift Nifty’s flat cues. 

US Markets on Thursday 

US markets ended mixed on Thursday, with the Nasdaq 100 edging up 0.03 per cent while the broader NYSE Composite slipped 0.13 per cent and the S&P 500 also closed lower. The Dow Jones Transportation Average dropped 1.33 per cent and the Russell 2000 eased 0.11 per cent, while utility stocks fell 0.81 per cent, in a broadly weak session. The split pointed to renewed investor caution. 

Oil Prices 

Oil prices fell on Friday morning, with WTI crude down 1.54 per cent at $93.19 a barrel and Brent crude off 0.74 per cent at $105.81, even as Murban crude, the key Gulf benchmark, jumped 4 per cent to $117.60. Natural gas tumbled 4.09 per cent and gasoline fell 2.16 per cent, and the Opec Basket slipped 2.98 per cent to $107.69. WTI Midland bucked the trend, up 2.58 per cent at $95.92. 

Sensex, Nifty Close on Thursday 

Indian equity benchmarks fell sharply on Thursday, with the Sensex tumbling 1,247.71 points, or 1.67 per cent, to settle at 73,580.54 and the Nifty declining 383.70 points, or 1.64 per cent, to end at 23,063.10 on a crude oil spike and selling in Reliance Industries and bank stocks. Of the 30 Sensex stocks, 29 ended lower, with Bajaj Finance down 5.47 per cent, Axis Bank down 4.67 per cent and Bajaj Finserv down 4.06 per cent, while NTPC was unchanged. Ponmudi R of Enrich Money linked the selloff to surging bond yields and a crude rebound, with the US 10-year yield near 5.11 per cent and the 30-year at its highest since 2004. NSE shares ended nearly 2 per cent higher at Rs 1,818 on debut, while FIIs bought equities worth Rs 1,617.45 crore on Wednesday. 

Source

• nseindia.com