Gift Nifty Points to Muted Start for Indian Markets as Asian Stocks Decline, Wall Street Falls

Mumbai, Sept 29: The domestic bourses are likely to open in a subdued manner on Tuesday after Asian equities declined in early trading today and Wall Street fell on Monday. The Gift Nifty futures fell 25 points or 0.11 per cent to 22,878 as on 8:11 am IST suggesting a flat to lower start for the Sensex and Nifty when markets open at 9:15 am today. The Nifty had ended 22,780.25, a six-month low, on Monday as the Sensex lost 1,124.02 points on higher crude prices.  

US and Iran held separate discussions with intermediaries on Monday towards a renewed attempt to halt the seven months old war, Reuters reported, as per sources from the two countries. Discussions, if any take place, will centre around a modified 7-day proposal that Iran floated last week during its UN general assembly. The war started in the last week of February when the US and Israel struck Iran. Cease fire talks had taken place twice before during April and June but both broke down.  

Iran’s foreign minister Abbas Araqchi said Iran was expecting a response from the US on their recent proposals for a cease fire and opening of the strait of Hormuz, state media IRNA reported. US president Donald Trump said that US officials had separate talks with intermediaries on Monday at the White House. He did not provide more detail. Trump had turned down Iran’s proposal on Saturday but said on Axios on Sunday that he hoped the US delegates would sit for more discussions this week.  

Iran’s proposal included a cessation of hostilities in Iran and Lebanon, release of frozen assets worth billions of dollars, removing of sanctions against Iranian oil and US to lift its blockade on Iranian ports. Thereafter, Iran would open the strait of Hormuz and negotiations could begin on Iran’s nuclear program and Trump’s desire to take control of or destroy the highly enriched uranium. “We have provided them the formula if they want an agreement or a peaceful resolution,” Araqchi added.  

Gift Nifty Down in Early Trade  

The Gift Nifty near month contract which expires on 29th September traded at 22,835.50 as on Monday 16:00 IST close. It was 25 points or 0.11 per cent lower from its previous close. The October expiry contract that expires on October 27 was at 22,878 or 0.11 per cent lower as on 8:11 am IST Tuesday. This suggests that the Nifty could start out lower when it opens at 9:15 am. The Nifty ended 360.25 points or 1.56 per cent lower on Monday.  

Asian Bourses Soft to Lower  

Asian equities were mostly lower as on Tuesday morning. The Nikkei 225 fell 0.87 per cent to 65,307 while South Korea’s KOSPI slipped 0.26 per cent to 6,872.14. Hong Kong’s Hang Seng Index declined 0.66 per cent to 24,479.59. Malaysia’s benchmark index dropped 0.78 per cent and New Zealand’s NZX 50 slipped 0.86 per cent to 13,711.12. Shanghai index declined 0.19 per cent to 3,816.22 and Shenzhen Index rose 0.28 per cent to 12,894.50. Australia’s ASX 200 also gained 0.06 per cent to 8,684.60. Nifty 50 was unchanged at 22,780.25.  

Wall Street Closes Lower  

Wall Street ended in the red on Monday. The Nasdaq 100 slid 1.08 per cent to 30,276.81. The NYSE Index declined 0.65 per cent to 23,757.31 and Russell 2000 lost 0.69 per cent to 2,817.91. The utility index lost 0.58 per cent to 1,004.50 and the transport index edged up 0.05 per cent to 19,582.54.  

Crude Prices Rise

Brent crude was trading at USD 106.54 per barrel or up 1.20 per cent and WTI was at USD 93.61 per barrel or up 1.09 per cent, as per delayed data. Murban crude rose 3.38 per cent to USD 116.94. Heating oil rose 1.37 per cent to USD 4.820. Gasoline declined 0.5 per cent to USD 3.321. The Opec Basket price fell 1.53 per cent to USD 112.78 after a 3 day lag.  

US Bond Yield at Two-Decade High  

US 10 year bond yield touched 5.21 per cent on Monday, a two decade high. Investors sold bonds after Trump rejected Iran’s proposal regarding Hormuz. The yield has risen substantially from 4.7 per cent a month ago. This adds to the woes of emerging market flow despite Iran and US coming back into contact via intermediaries.  

Sensex & Nifty  

The Sensex lost 1,124.02 points or 1.52 per cent to 72,771.72 on Monday. The Nifty ended 360.25 points or 1.56 per cent lower at 22,780.25, closing at a six-month low. Out of 4,285 stocks, 1,214 advanced, 2,905 fell and 166 remained unchanged. All sectoral indices ended in the red. The Nifty PSU bank index lost nearly 3 per cent. The telecom index shed 2 per cent. The Energy, Infra, FMCG, Realty, Private Bank, Metal and Oil & Gas index all declined over 1 per cent. The Nifty Midcap index slipped 1.7 per cent while the Smallcap index fell 1.8 per cent.  

Source

•  nseindia.com