Gift Nifty Signals Flat Open for Sensex, Nifty on Tuesday

Mumbai, October 26: Gift Nifty futures point to a flat opening for the Sensex and Nifty 50 on Tuesday, with the contract trading about 18 points above the Nifty’s Monday close. The Indian indices snapped a four-session losing streak on Monday, with the Sensex rising 0.66 per cent and the Nifty 0.68 per cent. 

The near-month Gift Nifty contract was trading at 22,771.50, down 2 points or 0.01 per cent from its previous close of 22,773.50, in afternoon trade on Monday. Against the Nifty 50’s Monday close of 22,753.20, the contract is at a premium of 18.30 points, or 0.08 per cent. 

The contract opened at 22,558.50 and slid to a low of 22,451.50 in the early part of the Indian session. A sharp rally then lifted it above 22,700 by mid-morning, and it touched a high of 22,795.50 before settling at 22,771.50 in the afternoon. 

Asian Stocks 

Asian markets ended mixed on Monday, with Japan’s Nikkei 225 sliding 0.8 per cent, or 503.51 points, to 62,189.65 and South Korea’s Kospi falling 1.46 per cent to 5,469.47. Chinese markets were split, as the Shenzhen index lost 1.2 per cent to 11,534.38 while the Shanghai Composite added 0.19 per cent to 3,697.52. Hong Kong’s Hang Seng rose 0.51 per cent, or 118.44 points, to 23,211.81, and Thailand’s SET index led the gainers with a 1.05 per cent rise to 1,579.03. Australia’s ASX 200 gained 0.17 per cent to 8,809.90, while Singapore’s Straits Times eased 0.12 per cent and Malaysia lost 0.45 per cent. 

Oil Prices 

Oil prices fell on Monday, with Brent crude losing USD 1.79, or 1.53 per cent, to USD 114.93 per barrel and West Texas Intermediate (WTI) dropping USD 2.21, or 2.14 per cent, to USD 101.06. Brent eased from a near six-month high of USD 117, but attacks by Yemen’s Houthi group on Saudi Arabia keep supply-disruption risks in focus, and Murban crude rose 3.16 per cent to USD 118. India depends heavily on imported crude, so costlier oil widens the import bill, feeds inflation and squeezes corporate margins, and higher fuel and transport costs could also weigh on consumption. 

Iran War 

Iran has substantially increased efforts to target US personnel, and its lethal plots against American citizens have reached advanced stages in the Middle East and certain other countries, US Director of National Intelligence Jay Clayton warned in an October 23 memo to Secretary of State Marco Rubio, seen by Reuters. The warning followed Washington’s decision to scale back staffing at its Saudi Arabia mission after intensified attacks by Iran-allied Houthi forces, and the State Department ordered non-emergency staff and their families to leave. On Saturday, it updated travel advisories for more than a dozen Gulf and Middle East countries, including Saudi Arabia, Qatar, the United Arab Emirates, Iraq and Israel. The Houthi attacks have coincided with a rise in attacks on commercial shipping in the Strait of Hormuz, and the war, a week from its ninth month, has weighed on President Donald Trump’s approval ratings ahead of the November 3 midterm elections. 

Monday’s Close 

Indian equity indices ended higher on Monday, snapping a four-session losing streak. The Sensex rose 482.92 points, or 0.66 per cent, to 73,606.75, and the Nifty 50 gained 153.20 points, or 0.68 per cent, to 22,753.20, as buying in pharmaceutical, metal and oil and gas stocks lifted sentiment. The recovery came after the Nifty and Sensex lost 2.36 per cent and 2.15 per cent, respectively, last week, and concerns over elevated crude prices and Middle East tensions persisted. 

Rising oil prices and their impact on inflation continued to weigh on sentiment, while investors turned their attention to the US Federal Reserve’s policy decision on Wednesday. They are also assessing the implications of a potentially hawkish Fed outlook for emerging-market capital flows, as higher US interest rates could strengthen the dollar and reduce the appeal of Indian equities. Market breadth was positive, with 2,262 stocks advancing, 1,895 declining and 186 remaining unchanged. 

Sources

• Gift Nifty
• NSE data
• Reuters
• PTI
• CNBC
• OilPrice.com