Gift Nifty Points to Positive Open for Indian Markets on Monday

Mumbai, Aug 24: Indian equity benchmarks are set to open in the green on Monday, drawing strength from a strong close on Wall Street on Friday and a pullback in crude oil prices, even as Asian markets woke up to a muted and mixed session. The upbeat global risk mood comes despite Washington escalating its economic pressure campaign against Iran, with the US vowing an “economic D-Day” of unprecedented sanctions even as Tehran threatens to shut down all Gulf oil exports in retaliation. 

The positive US cues, led by a near 1 per cent rally in the Dow, have historically flowed through to Indian markets at the opening bell, and Monday’s setup looks no different, with Gift Nifty pointing to a firm start. The easing in oil prices adds a further tailwind, offering some relief on the inflation front for a market that has spent the past week grappling with elevated crude and a bout of global bond-market stress. 

The one note of caution comes from Asia, where the region’s benchmarks are trading in a mixed-to-muted fashion, with Hong Kong’s Hang Seng down sharply even as several other markets edge higher. That divergence, layered on top of the fresh Iran sanctions threat, means Monday’s gains for Indian markets could stay measured rather than emphatic, even with the broadly constructive overnight backdrop. 

Gift Nifty futures for the August 25 series were trading at 24,379.50, up 71 points, or 0.29 per cent, as of 8:02 am IST on Monday. The move suggests Indian benchmarks are likely to extend Friday’s marginal gains into a firmer opening this week. 

Wall Street on Friday 

Wall Street closed sharply higher on Friday, with the Dow Jones Industrial Average jumping 517.80 points, or 0.98 per cent, to 53,277.01. The Nasdaq Composite added 113.29 points, or 0.43 per cent, to 26,180.46, while the S&P 500 rose 33.21 points, or 0.43 per cent, to 7,674.37. The NYSE Composite and Canada’s S&P/TSX index also ended the session firmly in positive territory. 

Asian Markets on Monday Morning 

Asian markets presented a mixed picture on Monday morning, with Australia’s S&P ASX All Ordinaries up 0.65 per cent and Vietnam’s HNX 30 surging 3.44 per cent to lead regional gains. Indonesia’s JSX Composite, Pakistan’s KSE 100 and Thailand’s SET Index also traded higher, while Malaysia’s FTSE Bursa KLCI slipped marginally. Hong Kong’s Hang Seng was the standout laggard, tumbling 1.93 per cent, while Japan’s Nikkei and Shanghai’s SE Composite posted modest declines. The muted-to-mixed tone stood in contrast to the strength seen on Wall Street just a session earlier. 

Oil Prices 

Oil prices eased noticeably in early Monday trade, with WTI crude down 1.59 per cent at $85.68 a barrel and Brent crude off 1.40 per cent at $93.07 a barrel. Gasoline and heating oil also declined, falling 1.66 per cent and 1.83 per cent, respectively, even as the broader crude complex stayed under pressure. Murban crude bucked the trend, however, rising 2.39 per cent, underscoring the uneven nature of Monday’s pullback across benchmarks. 

Iran War Updates 

The Iran conflict escalated further over the weekend after US Treasury Secretary Scott Bessent wrote in the Financial Times that Monday would mark an “economic D-Day,” calling it the greatest financial offensive ever marshalled against an adversary. Iran’s Supreme National Security Council secretary, Mohsen Rezaei, warned that if the economic war continued, not a single drop of oil would be exported through the Strait of Hormuz or anywhere in the Persian Gulf. China’s embassy in Washington pushed back on the sanctions push, calling instead for diplomacy, even as Bessent urged Beijing to cooperate given its heavy reliance on Gulf energy. Pakistan’s army chief, Asim Munir, is set to visit Tehran on Monday as part of continuing mediation efforts to de-escalate the six-month-old conflict. 

Indian Markets on Friday 

Indian benchmarks ended largely flat on Friday, with the Sensex inching up just 3.11 points to 77,540.83 and the Nifty 50 gaining 20.15 points, or 0.08 per cent, to 24,252.00. The session was volatile and rangebound, with buying in metal and realty stocks offsetting selling across IT, FMCG, auto, media and pharma shares. Welspun Corp was the standout individual mover, surging 15.3 per cent after securing a record $1.8 billion supply order, while Power Grid Corporation, Nestle India and Kotak Mahindra Bank led the broader gainers. For the week, both the Sensex and Nifty ended lower, down 0.6 per cent and 0.5 per cent, respectively, as elevated crude prices and a bond-market selloff weighed on sentiment. 

Source

•  nseindia.com