Gift Nifty Points to Weak Start on Wednesday

Mumbai, Sept 8: Indian stocks are likely to open weaker on Wednesday tracked by Gift Nifty 23,685.50, lower by 28 points or 0.12 per cent at last quoted intraday price. This level suggests a lacklustre start for Nifty at Wednesday’s opening bell at 9:15 am. The September 29 expiry gift Nifty future opened at 23,822 and hit an intraday high of 23,822, slipped through the day to an intra-day low of 23,680. Nifty ended weak on Tuesday on Dalal Street and is set to extend the losses for a third consecutive session. The October 27 contract was down 78.50 points or 0.33 per cent to 23,755.50 –noticeably weaker than the near month contract. Markets traded lower through Tuesday’s session showing traders remain firmly on the defensive at Wednesday’s bell with crude prices surging higher and tensions flaring between Iran and the United States.  

Crude Oil Prices Jump  

West Texas Intermediate crude rose 2.70 per cent to trade at $93.95 per barrel while Brent crude oil gained 1.70 per cent at $98.65. Murban crude outperformed all the benchmarks, climbing up by 6.03 per cent to $113.21 a barrel while OPEC basket price soared 8.76 per cent at $106.26 per barrel. Heating oil advanced by 2.38 per cent while gasoline ended 1.05 per cent higher. Natural gas was the only commodity on the negative side, down 0.54 per cent to $2.959. All crude benchmarks jumped higher as Gulf tensions remain elevated.  

Asian Markets  

Tokyo ended weaker with Nikkei 225 index tumbling down 1.70 per cent, down by 328.16 points. Sydney’s All Ordinaries lost 0.94 per cent and Pakistan’s KSE 100 was down 0.97 per cent while Hong Kong’s Hang Seng shed 0.38 per cent. Kuala Lumpur KLCI was marginally down by 0.02 per cent. Jakarta Composite advanced 1.01 per cent, HNX 30 index added 0.98 per cent and Shanghai Composite was higher by 0.20 per cent. Shanghai ended in the green pulled by banks and energy stocks.  

SENSEX, Nifty Down As Banks, Oil and Gas, IT Stocks Drag  

Back home, benchmark indices Sensex and Nifty traded deep in red territory for the second straight day on Tuesday led by the fall in banking, oil and gas and IT stocks. While media, pharma and FMCG stocks provided some support, buying was largely seen on weaker levels. Sensex ended lower by 555.23 points or 0.73 per cent to 75,577.58 and Nifty ended lower by 144.05 points or 0.61 per cent to 23,635.10. Broader markets too extended losses with the midcap and smallcap indices slipping below the key 50000 and 30000 mark respectively. On the NSE, breadth of the market was weak with 2174 shares declining and 2025 advancing.  

The above GIFT NIFTY Opening Signal is based on all macro & geopolitical factors remaining same during tonight’s U/S session. Any sudden development related to Iran war, crude oil prices or global risk sentiment may change the actual sentiment during tomorrow’s opening bell.  

India’s benchmark equity indices snapped two sessions of gains on Tuesday and fell below the key psychological level of 24,000 on weakness across banking, financial services and realty (Financials) and IT stocks. Markets had ended at six-week lows on Monday and Tuesday’s weak open extended those losses. Tehran has warned of retaliation if America attacks Iran, even as oil prices jumped above $93 a barrel. Iran’s Revolutionary Guards have promised revenge against the United States for any new attacks on the country and Tehran has said energy installations throughout the Gulf are at risk. Investors remained focused on rising oil prices and geopolitical tensions. Investors also continued to worry about high crude prices and their impact on India’s current account deficit and inflation.  

Financial stocks remained weak, with the Nifty Private Bank index down 1 per cent and the Nifty Bank index down 0.5 per cent. Shares of ICICI Bank, Axis Bank and SBI Life Insurance were among the top losers on the Nifty 50. The Nifty Oil & Gas index slipped 0.67 per cent and the IT index was the other laggard on the NSE, down 0.37 per cent. Oil is one of the biggest worries for Indian markets at the moment. Brent crude futures traded near $98 a barrel and India meets about 85 per cent of its oil needs through imports. High oil prices are worry for India as rising crude prices increase companies fuel bills and eat into their margins.  

Source:

• NSEIX. com
• OilPrice. com