Gift Nifty Points to Weak Open for Sensex, Nifty on Thursday

Mumbai, October 21:Gift Nifty futures point to a weak opening for the Sensex and Nifty 50 on Thursday, with the contract trading about 77 points below the Nifty’s Wednesday close. Crude oil near USD 111 per barrel and Iran’s refusal to talk to Washington keep sentiment cautious.

The near-month October 27 Gift Nifty contract was trading at 22,734.50, down 297 points or 1.29 per cent from its previous close of 23,031.50. The Nifty 50 ended Wednesday at 22,811.35, which leaves the Gift Nifty at a discount of 76.85 points, or 0.34 per cent.

The contract opened at 23,038.00 and touched a high of 23,132.50 early in the session. It then slid steadily to a low of 22,655.00, a fall of 477.50 points from the peak, and has recovered only a small part of that drop.

Brent crude rose 1.82 per cent, or USD 1.98, to USD 110.77 per barrel, while West Texas Intermediate gained 2.16 per cent, or USD 2.11, to USD 99.93, but Murban crude slipped 0.95 per cent to USD 110.04. Costlier crude remains a key risk for India, a large oil importer.

Asian Stocks

Asian markets ended mostly higher on Wednesday, led by South Korea’s Kospi, which surged 3.29 per cent, or 182.92 points, to 5,735.66. Taiwan’s benchmark gained 1.28 per cent to 46,887.77, and Japan’s Nikkei 225 rose 0.85 per cent, or 545.82 points, to 64,621.24. Australia’s ASX 200 added 0.16 per cent to 8,831.30, while Singapore’s Straits Times index climbed 0.63 per cent to 5,437.99. Greater China lagged, with Hong Kong’s Hang Seng down 0.90 per cent at 23,651.87, the Shanghai Composite off 0.60 per cent at 3,713.03 and the Shenzhen index lower by 0.82 per cent.

Iran War and Peace Hopes

Iran has hardened its stance despite mediation by Pakistan, the key go-between for Tehran and Washington. Reuters reported on Tuesday that Iran told Pakistan’s army chief, Field Marshal Asim Munir, there would be no talks with the United States until Tehran’s demands were met. President Masoud Pezeshkian discussed the mediation efforts with Munir in Tehran.

Parliament speaker Mohammad Baqer Qalibaf said Washington cannot regain Tehran’s trust until it meets seven conditions set last month for reopening the Strait of Hormuz. These include ending the US blockade on Iranian ports, lifting sanctions on oil exports and ending hostilities on all regional fronts. Security chief Mohsen Rezaei said all enriched nuclear material will stay in Iran, reiterating Supreme Leader Ayatollah Mojtaba Khamenei’s position that near-weapons-grade uranium should not be shipped abroad.

Hopes for peace now rest on Pakistan’s efforts, which helped produce an interim agreement in June. That deal, the Islamabad Memorandum, unravelled within weeks as fighting resumed. US Vice President JD Vance has said Iran must make a meaningful cut in its enrichment capacity to end the eight-month-old war, leaving the two sides far apart. Israel, the United States and other Western states have long accused Iran of seeking nuclear weapons, a charge Tehran denies.

Wednesday’s Close

Indian equities ended lower on Wednesday as higher crude oil prices kept investors wary, even as the Jio Platforms IPO drew a strong response. The Nifty 50 fell 0.34 per cent, or 77.60 points, to 22,811.35, while the Sensex lost 0.19 per cent, or 143 points, to 73,709.69. Both indices had gained about 1 per cent in early trade before the sell-off.

Information technology stocks were the standout gainers. The Nifty IT index climbed 695 points, or 2.21 per cent, to 32,211.35, with nine of its ten constituents advancing. Wipro (WIPRO) led with a 3.30 per cent gain to Rs 188.15, followed by Infosys (INFY) and Mphasis (MPHASIS). Oracle Financial Services Software (OFSS) was the lone decliner, slipping 0.14 per cent.

Jio Platforms’ USD 3.2 billion IPO was fully subscribed within two hours of bidding opening. It is India’s largest share sale and the first from Mukesh Ambani’s Reliance in two decades. The response underlines strong investor appetite for the offer even as the broader market stayed under pressure.

Sources:

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