Indian Markets Set To Open Weak on Monday as Gift Nifty Points Lower

Mumbai, Sept 28: Gift Nifty is down 0.52 percent in early trade which indicates Indian market will see a weak open on Monday. After Friday’s slight rally, we can see Indian stock market reversing the trend as Sensex and Nifty had seen some buying in value. Due to the war in Iran and oil prices surging, along with Asian stocks falling, Indian markets will be affected.  

War in Iran  

Trump has denied reopening the Strait of Hormuz to Iran. The Iranian government has stated that they can only end the war with diplomacy. Although Trump said there could be more discussions this week. For now, the Strait of Hormuz will have minimal traffic passing through.  

Oil Price Rises  

Oil has risen further today with Brent up 1.96 percent at $106.36 per barrel. While WTI is up 1.30 percent at $93.61 per barrel.  

Asian Stocks fall  

Most Asian markets have opened lower this morning. With Chinese’s Shenzhen component seeing a decline of 3.42 percent. Korean Kospi has fallen 2.36 percent after both countries took Friday as a holiday. Other Asian markets such as Hong Kong, Australian and Singaporean stock are rising today.  

Gift Nifty Trading Levels  

Gift Nifty September 29 expiry is trading at 23,114.50 which is a decrease of 121.50 points or 0.52 percent as of 8.20 am on Monday. Currently Gift Nifty is at a discount of 26 points to Nifty’s Friday closing price of 23,140.50. Indicating that when Indian stock market opens at 9.15 am we will see a lower open. According to Vinod Nair from Geojit. Nifty holding above 23,000 shows there is strength from the domestic front. This will be the key level to watch.  

Iran War  

The country stated on Sunday that they can only end their war against the US and Israel with diplomacy. This came after Trump said he would not accept their offer to reopen the Strait of Hormuz. Iranian Foreign Minister Abbas Araqchi said that if they want to reopen the strait then they must follow what they demand. Trump said in an interview with Axios that there could be further talks this week. Mike Waltz who is the envoy to the UN said that Trump didn’t accept the terms as Iran wanted to lift sanctions immediately and free all assets. As the Houthis have been moving forward in Yemen. Schools in Saudi Arabia have gone online this week as the war grows closer to them.  

Asian Markets  

Asian markets saw a dip on Monday morning. The Chinese stock market fell 3.42 percent to 12,862.24. South Korea’s Kospi dropped 2.36 percent to 6,913.66 and China’s Shanghai composite saw a drop of 1.84 percent to 3,816.84. SGX-CNBC China Growth was down 1.07 percent and Japan’s Nikkei 225 dropped 0.05 percent to 66,333.53. While the rest of Asian market rose. The Hang Seng index in Hong Kong saw an increase of 0.68 percent to 24,676.85. The ASX 200 rose 0.49 percent to 8,707.30 and Singapore STI increased 0.50 percent to 5,739.64. New Zealand NZX 50 was up by 0.12 percent and Thai SET remained flat.  

US Market Closed Higher on Friday  

The US market rose on Friday. The Nasdaq 100 was up 0.42 percent at 30,608.13. And NYSE composite gained 0.40 percent at 23,912.59. The Dow transportation average was up 0.49 percent to 19,572.22. Utilities saw an increase of 0.30 percent to 1,010.32. The Russell 2000 had the lowest gain of 0.07 percent to 2,837.55.  

Indian Stock Market on Friday  

Indian stock market rose on Friday on the back of value buying in bank, oil & gas and auto stocks. Sensex closed 315.20 points higher at 73,895.74 or 0.43 percent. While Nifty rose by 77.40 points to 23,140.50 or 0.34 percent. Sensex traded in a range of 490 points with a high of 73,968.05 and low of 73,477.77 after reaching a three month low on Thursday. The top gainer on the Sensex was Axis Bank (AXISBANK) which rose by 2.82 percent. Followed by M&M (2.24%) and Asian paint (ASIANPAINT) rose by 1.93%. Trent (TRENT) fell by 1.41% was the top loser on the Sensex. FIIs sold off Rs 5,027.36 Crore on Thursday.