Gift Nifty Signals Lower Open for Sensex, Nifty on Friday 

Mumbai, November 13: Indian markets are set for a gap-down opening on Friday, with Gift Nifty trading about 68 points below the Nifty 50’s last close. US stocks ended lower on Thursday, oil remains elevated near USD 96 and the Iran war is still unsettled, even as parts of Asia are higher. 

The near-month Gift Nifty contract was at 25,231.50 at 7.49 am on Friday, down 43.00 points, or 0.17 per cent, from its previous close of 25,274.50. Against the Nifty 50’s Thursday close of 25,299.35, that is a discount of 67.85 points, or 0.27 per cent. 

Oil is easing only marginally, with Brent crude at USD 95.69 a barrel, down 0.14 per cent, and West Texas Intermediate (WTI) at USD 88.34, down 0.45 per cent. Both are well above their Thursday morning levels of USD 91.88 and USD 85.65. 

Asian stocks are mixed, with Taiwan up 2.41 per cent, Japan’s Nikkei up 1.64 per cent and South Korea’s Kospi up 1.25 per cent, while Singapore, Hong Kong and Australia are lower. 

Wall Street ended lower on Thursday, with the Nasdaq down 0.39 per cent, the S&P 500 down 0.35 per cent and the Dow Jones down 0.36 per cent. The VIX volatility index jumped 6.92 per cent to 18.70. 

The Iran war remains unsettled, with Reuters reporting tankers still ablaze in the Strait of Hormuz and at least 10 ships hit in the first 10 days of November. The US naval blockade of Iranian ports continues. 

Oil Prices 

Brent crude slipped USD 0.13, or 0.14 per cent, to USD 95.69 a barrel, while WTI fell USD 0.40, or 0.45 per cent, to USD 88.34, though both are well above Thursday morning’s USD 91.88 and USD 85.65. Murban crude was quoted at USD 93.47 on November 12, up 1.66 per cent, while the OPEC basket rose 0.88 per cent to USD 86.78. Natural gas gained 0.09 per cent to USD 3.343. 

Asian Stocks 

Asian stocks were mixed on Friday morning, with Taiwan up 2.41 per cent at 44,131.74, Japan’s Nikkei up 1.64 per cent at 61,816.72 and South Korea’s Kospi up 1.25 per cent at 5,409.59. Shanghai added 0.28 per cent to 3,665.89. Hong Kong’s Hang Seng fell 0.62 per cent to 23,859.12, Singapore’s Straits Times dropped 0.81 per cent to 5,240.05 and Australia’s ASX 200 lost 0.78 per cent to 9,075.30. Shenzhen slipped 0.40 per cent and New Zealand’s NZX 50 eased 0.53 per cent. 

US Markets 

US stocks ended lower on Thursday, with the Nasdaq Composite down 100.10 points, or 0.39 per cent, at 25,366.09 and the S&P 500 down 26.98 points, or 0.35 per cent, at 7,592.40. The Dow Jones Industrial Average fell 189.40 points, or 0.36 per cent, to 52,297.09, while the Russell 2000 small-cap index dropped 1.66 per cent. The NYSE Composite declined 0.74 per cent and the VIX volatility index jumped 6.92 per cent to 18.70. 

Iran War 

Tankers are still burning in the Strait of Hormuz despite expectations of de-escalation, with Iran saying a tanker caught fire after hitting a mine on Wednesday, Reuters reported. At least 10 ships were hit in the first 10 days of November, after 37 attacks in October, the highest monthly tally since the conflict began. US forces continue to enforce a naval blockade of Iranian ports, and the Houthis struck Saudi Aramco offices in Riyadh on November 8, causing limited damage. The International Maritime Organization has confirmed 133 incidents since late February, with at least 25 seafarers killed. 

Thursday’s Close 

Indian equity benchmarks ended marginally higher on Thursday after a volatile session, with the Sensex up 31.61 points, or 0.04 per cent, at 81,911.01 and the Nifty 50 up 44.30 points, or 0.18 per cent, at 25,299.35, as profit booking and elevated US bond yields capped gains. Breadth was positive, with 2,377 shares advancing and 1,878 declining, while the Nifty Realty index jumped 3.7 per cent and the Nifty Auto index fell 1 per cent. HDFC Life Insurance Company (HDFCLIFE), Bajaj Finance (BAJFINANCE), Shriram Finance (SHRIRAMFIN), SBI Life Insurance Company (SBILIFE) and State Bank of India (SBIN) led the Nifty 50 gainers, while Nestle India (NESTLEIND) and Mahindra & Mahindra (M&M) were among the losers. Foreign portfolio investors bought Indian equities worth Rs 12,563 crore on Wednesday, taking November net purchases to USD 6.43 billion. 

Sources

•  nseix.com
• NSE data
• BSE data
• CNBC
• OilPrice.com
• Reuters