Gift Nifty Signals Weak Start for Dalal Street on Thursday as Asian Stocks Slip, Wall Street Ends Lower

Mumbai, Sept 24: Stocks are likely to open lower on Thursday. Gift Nifty is trading way lower than the previous close. Asian markets have offered negative cues this morning and Wall Street ended in deep red on Wednesday. Iran war is yet to be resolved as the discussions are underway at UN.  

Asian markets are trading in the red zone. Wall Street ended in deep red on Wednesday with tech stocks and small caps leading the losses. Iran and US are still miles apart to bring an end to the war said a senior Iranian official to Reuters. Iranian President Masoud Pezeshkian said at the UN General Assembly that they will never bow to the US threats.  

Crude oil prices are mixed as Brent and WTI are trading lower while Murban Crude is surging. Strait of Hormuz has once again become a concern after a ship was attacked. India’s benchmark stocks had recovered on Wednesday on the hope that the West Asia situation may cool down. But those hopes seem to be dashed today as the session is expected to open weak.  

The 9.15 am open will give us an indication if Wednesday’s rally will continue or reverse. FII activity, Crude oil and news from Iran war will determine the course of trade.  

Gift Nifty trading below 23,300  

The 29th of September future was trading at 23,282.00 levels as of 8.09 am IST on Thursday which is a decline of 33.50 points or 0.14 per cent. It can be inferred that Indian indices will open lower than Wednesday’s close of 23,446.80 on the Nifty. Gift Nifty is trading in line with the global markets who have offered weak cues. Asian markets trading in the red and Wall Street closing lower on Wednesday coupled with the ongoing Iran war has caused a dip in the sentiment.  

Iran, US are miles apart to end the war  

Iran and the US are still miles apart on how to end the war but negotiations need to happen said a senior Iranian official to Reuters on Wednesday. This comes after Iran President Masoud Pezeshkian stated that they will never bow to US at the UN General Assembly and called US President Donald Trump of having a bullying mentality. Trump threatened to wipe out Iran at the same UN platform yesterday. US Secretary of State Marco Rubo said it will take time and effort to reach a resolution and that Trump also has military options. A cargo ship was struck by projectiles in the Strait of Hormuz by the UK maritime security agency UKMTO. Two crew members suffered injuries as producers pay hefty sums to ships to pass through the strait with their transponders off.  

Asian markets are trading weak  

Most Asian markets opened lower today. The Hang Seng in HK was trading 0.39 per cent lower at 24,738.29. Mainland China’s Shenzhen and Shanghai Index declined 1.35 per cent and 0.59 per cent respectively. Australian ASX 200 traded 0.68 per cent lower and Taiwanese index was down by 0.51 per cent. New Zealand and Malaysia are also in the red. The only market to see a rise is Japan’s Nikkei which is up 1.33 per cent at 65,883.41.  

Wall Street ends in deep red  

Wall Street closed lower on Wednesday. The Nasdaq 100 ended 0.85 per cent in the red and Russell 2000 was down 1.77 per cent. NYSE composite was lower by 0.75 per cent and Dow Jones transportation average ended 0.74 per cent lower. Small caps and large caps were hit as well as utility sector which was down 1.73 per cent.  

Oil prices  

Crude oil prices were mixed this morning. The global benchmark Brent crude was trading 0.82 per cent lower at USD 102.23. WTI crude was 0.75 per cent lower at USD 91.47. On the other hand Murban Crude surged 4.06 per cent to USD 113.08. Natural Gas rose 0.86 per cent to USD 3.049 and Heating Oil was up 1.29 per cent. Crude oil has remained under the influence of the Iran war. The Opec basket was down 4.50 per cent on a delayed day basis and Gasoline and WTI Midland followed suit by going down slightly.  

Sensex and Nifty rose on Wednesday  

Benchmarks had recovered on Wednesday on falling oil prices and a possibility of the war cooling down. Sensex gained 299.17 points or 0.40 per cent to close at 74,828.25. Nifty was up by 117.80 points or 0.50 per cent to close at 23,446.80. Tata Steel, Bajaj Finance, ITC, Ultra Tech, Power Grid and L&T were among the top gainers. HCLTech, Infosys, TCS, Titan and M&M were the losers. Asian Development Bank raised India’s FY27 GDP growth forecast to 7 percent which gave a positive boost to the market. FIIs sold equity worth Rs 3,809.99 crore on Tuesday and India’s September flash PMI data came in better than expected giving confidence to the market.  

Source

• nseindia.com