Gift Nifty Signals Flat-To-Positive Open Amid Truce Details; Eyes on Fed’s FOMC Verdict

Mumbai, June 17: Indian equity benchmarks are likely to open flat-to-positive on Wednesday as Gift Nifty futures are signalling a muted start amid respite in Iran-US tensions that have supported markets. Slight weakness comes after details of the US and Iran interim deal to resolve conflict in Middle East trickled in Tuesday with Strait of Hormuz blockade to be lifted as part of truce deal. The domestic markets are also awaiting verdict of two-day FOMC meeting of US Federal Reserve that begins Wednesday led by new chairman Kevin Warsh. The monetary policy committee meet is likely to set tone for global risk sentiment through the week. 

Gift Nifty June 30 futures traded at 24,009.00, down 16.50 points or 0.07% at 7:30 am IST on Wednesday. This follows after benchmark index Nifty 50 ended at 23,989.15 in the previous session, indicating Indian benchmarks are likely to open flat to mildly higher when markets open for trade on Wednesday. 

Middle East Conflict 

The US and Iran are set to make public the terms of an interim agreement to end the Middle East war, with President Donald Trump saying the deal rules out a nuclear weapon for Tehran. Under the memorandum, the US will lift its blockade of Iranian ports while Iran restores oil tanker passage through the Strait of Hormuz, blocked since February. Israel has distanced itself from the agreement, with Prime Minister Benjamin Netanyahu saying the country will not withdraw from southern Lebanon, while a Hezbollah spokesperson said Iran was unlikely to accept a permanent truce without an end to the occupation. The fragile ceasefire, extended by 60 days for further talks, has already claimed more than 7,000 lives across the region. 

Asian Markets 

Asian markets were mixed on Wednesday morning, with Japan’s Nikkei 225 rising 0.57% to 69,799.90 and Indonesia’s JSX Composite surging 4.12% to 6,254.97. Pakistan’s KSE 100 gained 1.89% to 180,392.98, while Hong Kong’s Hang Seng slipped 0.14% to 24,460.21. China’s Shanghai Composite also edged lower, down 0.12% to 4,087.12, while Thailand’s SET index declined 0.23% to 1,588.05. 

US Markets 

US markets closed mixed on Tuesday, with the Dow Jones Industrial Average climbing 328.64 points, or 0.64%, to settle at 51,999.67. The S&P 500 slipped 0.57% to 7,511.35, while the Nasdaq Composite fell sharply by 1.15% to 26,376.34. The NYSE Composite bucked the tech-led weakness, adding 0.13% to close at 23,704.03. 

Oil Prices 

Brent crude futures tumbled below $80 a barrel, the lowest level since the early days of the US-Iran conflict in March, after a senior US official said Washington would waive sanctions on Iranian oil exports under the new agreement. The slide reflects markets pricing in a full normalisation of Hormuz flows, though HSBC analysts expect this to take until end-September. Additional Iranian barrels entering the market have weighed on crude even as US oil reserves sit at their lowest since 1983 following the three-month supply squeeze. 

Tuesday Closing of Indian Markets 

Indian equity benchmarks ended firmly higher on Tuesday, with the BSE Sensex surging 544.15 points, or 0.71%, to close at 76,808.48, while the NSE Nifty 50 gained 135.25 points, or 0.57%, to settle at 23,989.15, both as of the Tuesday close. Information technology, FMCG and realty stocks led the rally, outweighing weakness in metals and select healthcare counters. Market breadth stayed positive, with 2,275 stocks advancing against 1,795 decliners and 151 unchanged on the NSE. 

Source

• Gift Nifty data from NSE/SGX-IFSC live feed