Indian Markets Poised to Start Higher as Asia Advances, Oil Declines

Mumbai, June 30: Indian equities are poised for a positive start on Tuesday, tracking overnight gains on Wall Street, advances across most Asian markets and a decline in crude oil prices, even as investors remain watchful of fresh U.S. economic data and diplomatic developments in the Middle East. 

Softer energy prices are expected to provide support to sectors such as aviation, paints, chemicals and oil marketing companies, while easing inflation concerns could also improve the broader market mood. 

Asian markets mostly advance 

Japan’s Nikkei was up 0.9%, South Korea’s KOSPI advanced over 1% and Taiwan’s benchmark rose over 3%, buoyed by continued buying in technology and semiconductor stocks. Hong Kong’s Hang Seng declined over 1%. 

Market participants will be keeping an eye out for key U.S. economic releases later this week, particularly the closely watched non-farm payrolls report, which could shape expectations around the Federal Reserve’s interest-rate path. 

Wall Street up 

U.S. equities ended higher overnight, with technology stocks leading the advance as investors welcomed easing geopolitical tensions and lower crude oil prices. 

The Nasdaq outperformed the other major indices, while the S&P 500 also finished in positive territory as traders rotated back into growth stocks. Investor sentiment improved following reports that the United States and Iran could resume nuclear-related discussions in Doha, reducing fears of an immediate escalation in the Middle East and easing concerns over global oil supplies. 

The prospect of softer inflation stemming from lower energy prices further supported expectations that the Federal Reserve could stay on course for monetary easing later this year, although investors continue to await fresh economic data before making larger bets. 

European shares steady 

European equities ended little changed on Monday, with gains in technology stocks offsetting caution surrounding geopolitical developments and upcoming macroeconomic data. 

Technology shares tracked their U.S. counterparts higher, while investors continued to monitor diplomatic efforts involving Iran and the United States. The possibility of renewed negotiations helped keep risk appetite intact, even as traders refrained from taking aggressive positions ahead of important economic releases. 

Oil declines 

Crude oil prices fell on Tuesday after reports that Washington and Tehran may resume talks, easing concerns over potential supply disruptions in the Middle East. 

Brent crude edged closer to levels seen before the recent regional conflict, with investors increasingly focusing on demand fundamentals rather than geopolitical risks. Lower crude prices are particularly beneficial for India, one of the world’s largest oil importers, as they help reduce import costs, improve the fiscal outlook and ease inflationary pressures. 

Against this backdrop, Indian markets are likely to open on a firm footing. Investors will also monitor foreign institutional flows and domestic macro cues for further direction as the June quarter draws to a close. 

Source

•  Exchanges