Gift Nifty Signals Green Open for Sensex, Nifty on Thursday as Oil Eases, Jio IPO Adds Cheer

Mumbai, October 15: Indian equity markets are set to open in the green zone on Thursday, with Gift Nifty futures trading 73 points, or 0.32 per cent, higher in early trade. The upbeat indication comes even as Asian markets are sharply lower in the morning and Wall Street ended in the red on Wednesday. 

Oil, Jio And Earnings Back Sentiment 

Domestic sentiment is getting support from three cues. Crude oil prices are easing, with Brent falling to about USD 104 per barrel after climbing towards USD 107 on Wednesday. Jio Platforms has injected fresh excitement into the primary market after setting a price band of Rs 1,065 to Rs 1,119 for an IPO that could raise about Rs 30,213 crore at the top of the range, making it India’s largest, with subscription opening on October 21. 

The corporate earnings season has also begun on a positive note. HCL Technologies’ better-than-expected September-quarter results lifted information technology stocks sharply on Tuesday. 

Gift Nifty Levels 

Gift Nifty futures for the near-month October 27 contract were quoted at 22,621.00 at 8:07 am IST on Thursday, up 73.00 points or 0.32 per cent. By calculation, that puts the previous close of the contract at 22,548.00. 

The current level is 1.70 points below the Nifty 50’s closing level of 22,622.70 on Wednesday. The indication is therefore positive against the previous Gift Nifty close, but close to flat against the spot Nifty. 

Oil Prices 

Brent crude fell 1.56 per cent, or USD 1.65, to USD 104.41 per barrel, while West Texas Intermediate lost 1.20 per cent, or USD 1.14, to USD 93.95 per barrel, according to OilPrice.com data on a 10-minute delay. The easing offers some relief to India’s import bill, inflation and rupee. Prices remain elevated, however, as the Strait of Hormuz, which carried about a fifth of global oil and liquefied natural gas trade before the war, is still under threat. 

Iran War 

Two ships, the Singapore-flagged container vessel GFS Pride and the Antigua and Barbuda-flagged bulk carrier Cape Dao, have sunk near the Strait of Hormuz after being hit by projectiles, maritime officials said on Wednesday. All 21 crew members of the GFS Pride were evacuated safely, while one crew member of the Cape Dao was killed when it was struck on September 23. The two are the second and third vessels to have sunk since the US-Iran war began on February 28, according to an analysis of International Maritime Organization data. Attacks around the waterway have surged over the past 10 days, with Iran saying it is stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month. 

Asian Markets 

Asian markets fell sharply in morning trade on Thursday, with South Korea’s Kospi plunging 6.74 per cent to 5,603.77 and Japan’s Nikkei 225 sliding 4.68 per cent to 64,573.00. Taiwan’s index fell 2.75 per cent to 47,290.17, the Shenzhen Component lost 2.07 per cent to 11,860.48 and the Shanghai Composite dropped 1.62 per cent to 3,706.02. Hong Kong’s Hang Seng fell 1.10 per cent to 24,047.72, and Singapore’s Straits Times shed 0.95 per cent to 5,371.68. Australia’s ASX 200 was down 0.10 per cent at 8,719.10, Malaysia slipped 0.39 per cent, and New Zealand’s NZX 50 was almost flat, down 0.02 per cent at 13,758.10. 

US Markets 

US stocks ended lower on Wednesday, with the tech-heavy Nasdaq Composite falling 1.88 per cent to 26,692.87 and the Nasdaq 100 sliding 2.02 per cent to 29,950.82. The S&P 500 fell 1.11 per cent to 7,718.94, the NYSE Composite lost 0.50 per cent to 23,865.42 and the Dow Jones Industrial Average declined 0.09 per cent to 51,621.48. The Dow Jones Transportation Average rose 0.10 per cent to 19,829.96, while the VIX volatility index jumped 10.48 per cent to 16.87. 

Wednesday’s Close 

The Sensex and Nifty 50 ended lower in volatile trade on Wednesday, giving up ground after Tuesday’s rally of around 1.6 per cent as elevated crude oil prices, persistent foreign investor outflows and weakness in financial and cyclical stocks weighed on sentiment. The Sensex fell 251.89 points, or 0.34 per cent, to close at 72,781.89, while the Nifty 50 declined 99.25 points, or 0.44 per cent, to settle at 22,622.70. Foreign portfolio investors sold shares worth Rs 1,305 crore on Tuesday, their 13th straight session of selling, while domestic institutional investors bought shares worth Rs 2,439 crore. Market breadth stayed positive, with 2,351 shares advancing, 1,694 declining and 129 unchanged, and the Nifty IT index continued to outperform after gaining 5.2 per cent on Tuesday. 

Sources

• Gift Nifty
• NSE
• BSE
• Reuters
• CNBC
• OilPrice.com