Gift Nifty Signals Green Open for Sensex, Nifty on Tuesday as Asia Rises, Oil Cools

Mumbai, October 27: Indian markets are set to open in the green on Tuesday, with Gift Nifty futures trading about 18 points above the Nifty’s Monday close. Asian stocks are looking up and US markets ended Monday mostly higher, while oil has cooled but stays elevated. With Brent near USD 115, gains may be limited. 

There is progress in the Iran war, with top officials from Saudi Arabia, Turkey and Pakistan meeting Iranian officials in Tehran on Monday to push for de-escalation. The four states agreed to continue talks, according to Iranian state media, even as Yemen’s Houthis launched new attacks on Saudi Arabia. 

The Gift Nifty November 23 contract was trading at 22,771.50, up 20.50 points or 0.09 per cent from its previous close of 22,751.00, as of 8:05 am IST on Tuesday. 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. That points to a modestly positive start for the benchmarks. 

Asian stocks are looking up on Tuesday morning, led by the Kospi and the Nikkei. Wall Street ended Monday mostly higher, with the Nasdaq 100 up 1.09 per cent. 

Brent crude has eased 0.98 per cent to USD 114.68 but remains elevated after nearing USD 117. For India, which depends on imported crude, that keeps inflation and the import bill in focus. 

Monday’s rebound was led by pharma, metal and oil and gas stocks. Investors now turn to the US Federal Reserve’s policy decision later this week, as a hawkish outlook could hurt emerging-market flows. 

Asian Stocks 

Asian stocks were mostly higher on Tuesday morning, led by South Korea’s Kospi, which rose 3.97 per cent, or 217.07 points, to 5,686.54. Japan’s Nikkei 225 gained 1.82 per cent, or 1,133.61 points, to 63,323.26, while Australia’s ASX 200 added 0.11 per cent to 8,819.90. Chinese markets were little changed, with the Shenzhen index up 0.09 per cent to 11,544.20 and the Shanghai Composite up 0.01 per cent to 3,697.78. Hong Kong’s Hang Seng slipped 0.21 per cent to 23,162.65, Singapore’s Straits Times fell 0.32 per cent to 5,398.58 and New Zealand’s NZX 50 lost 0.78 per cent to 13,626.85. 

US Markets 

Wall Street ended mostly higher on Monday, led by the Nasdaq 100, which rose 1.09 per cent, or 315.88 points, to 29,273.41. The NYSE Composite gained 0.29 per cent to 24,186.86, the Russell 2000 added 0.38 per cent to 2,786.42 and the transport index rose 0.81 per cent to 20,204.82. The utility index was the exception, slipping 0.11 per cent to 1,096.91. 

Oil Prices 

Oil prices cooled on Tuesday, with Brent crude down USD 1.13, or 0.98 per cent, at USD 114.68 a barrel and West Texas Intermediate (WTI) down USD 0.93, or 0.91 per cent, at USD 100.83. Murban crude slipped 0.28 per cent to USD 117.67, while heating oil fell 0.82 per cent and gasoline 0.39 per cent. Prices remain elevated, with Brent easing from a near six-month high of USD 117. 

Iran War 

Top officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran on Monday in a bid to de-escalate the conflict, the first high-level contact between Iran and the three nations, which signed the Mecca mutual defence pact in August. Saudi Arabia said the visit was meant to open negotiating channels to prevent a return of military escalation. Tensions remain high, however, as Yemen’s Houthis launched new attacks on Saudi Arabia, Egypt approved defence support for the kingdom, and US President Donald Trump said on Friday the US may strike Iran again. Iran’s conditions for ending the war include lifting a US blockade of its ports and sanctions on its oil exports, while US Vice President JD Vance has said Iran must reduce nuclear enrichment. 

Monday’s Close 

Indian equity benchmarks rebounded on Monday, snapping a four-session losing streak, on buying in pharmaceutical, metal and oil and gas stocks. The Sensex rose 482.92 points, or 0.66 per cent, to 73,606.75, while the Nifty 50 gained 153.20 points, or 0.68 per cent, to 22,753.20. The recovery followed a week in which the Nifty and Sensex lost 2.36 per cent and 2.15 per cent. Market breadth was positive, with 2,262 stocks advancing, 1,895 declining and 186 unchanged. 

Sources

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