Gift Nifty Points to Muted-to-Cautious Start as Asian Markets Trade Mixed, Oil Eases from Highs

Mumbai, Sept 16: Indian equity markets look set for a muted-to-cautious start on Wednesday, with early cues offering little conviction after Tuesday’s sharp sell-off. Asian markets are trading mixed this morning, and while oil prices have eased from their recent peaks, they remain at elevated levels that continue to weigh on sentiment. Gift Nifty’s modest uptick suggests a tentative, rather than confident, recovery attempt. 

Adding to the cautious mood, Saudi Arabia’s coalition said its air defences destroyed a Houthi drone near Mecca before it could enter the holy city’s airspace, underscoring how the six-month-old conflict keeps drawing in new fronts. Investors are also bracing for the US Federal Reserve’s policy decision, expected on September 16, with markets watching closely for signals on the rate path amid an already fragile global risk backdrop. Between a still-simmering Middle East conflict and a pivotal Fed decision, Wednesday’s session looks set to stay directionless until one of these two threads resolves. 

Gift Nifty futures for the September 29 series were trading at 23,239.50, up 36.50 points or 0.16 per cent, as of 8:13 am IST on Wednesday. That marks a modest premium over Tuesday’s Nifty 50 close of 23,118.60, recorded as of 4 pm IST on September 15. The tepid gain suggests traders are inclined to nibble at Tuesday’s steep fall rather than commit to a broader rebound just yet. 

Oil Prices 

Oil prices eased from their recent highs, with Brent crude down 0.64 per cent at $108.05 a barrel and WTI crude off 1.01 per cent at $104.76. Murban crude fell a sharper 3.13 per cent to $123.76, even as Mars crude and WTI Midland bucked the trend, rising 9.98 per cent and 3.85 per cent, respectively, reflecting how uneven the pullback in crude has been. Despite the retreat, benchmark prices remain well above levels seen before the Gulf conflict escalated, keeping India’s import bill and inflation outlook under pressure. 

Asian Stocks 

Asian markets were mixed on Wednesday morning, with Indonesia’s Jakarta Composite up 0.94 per cent and Pakistan’s KSE 100 rising 0.85 per cent, while Hong Kong’s Hang Seng and Australia’s All Ordinaries also edged higher. Japan’s Nikkei 225 slipped 0.14 per cent, and China’s Shanghai Composite was marginally lower, down 0.06 per cent. Malaysia’s KLCI and Thailand’s SET were among the region’s weaker performers, falling 1.11 per cent and 0.78 per cent, respectively. The split performance reflected a lack of a clear regional direction as investors weighed the Fed decision against the Middle East conflict. 

Wall Street  

US markets ended lower on Tuesday, extending the previous session’s weakness across major indices. The Dow Jones Industrial Average fell 0.63 per cent to 52,093.11, the S&P 500 declined 0.45 per cent to 7,585.73, and the Nasdaq Composite dropped 0.78 per cent to 25,981.57. The NYSE Composite also closed weaker, down 0.32 per cent at 24,128.46. 

Iran War 

Saudi Arabia’s air defences intercepted a Houthi drone south of Mecca on Tuesday evening before it could breach the holy city’s prohibited airspace, marking only the second such attempt on Mecca since a 2017 ballistic missile launch. The coalition called the city’s security a “red line,” even as Houthi officials denied targeting it. Separately, the US Congressional Budget Office said the six-month-old American war against Iran has cost $38 billion so far, with costs projected to rise by $3 billion a month and expected to lift inflation by 0.5 per cent in early 2027. The House also voted for a third time to compel President Trump to end the war, a measure that drew support from seven Republicans, up from four in previous votes. 

Sensex and Nifty on Tuesday 

The Sensex fell 777.94 points, or 1.04 per cent, to 74,003.82 on Tuesday, while the Nifty declined 279.50 points, or 1.19 per cent, to 23,118.60, its lowest close in five months. Surging crude prices, rising global bond yields and caution ahead of the Fed decision overpowered early gains led by IT stocks and HDFC Bank. The Nifty IT index had gained 2.2 per cent, with TCS and Infosys up 2.3 per cent and 3.8 per cent, respectively, while HDFC Bank rose 1.2 per cent after naming two CEO candidates to the RBI. However, financial stocks fell 1.8 per cent and auto stocks declined 2 per cent, dragging the broader market, including mid- and small-caps, sharply lower. 

Source

• nseindia.com