Indian Shares Edge Down At Pre-Open Pointing To Lower Start As Oil Hovers Above $100 Amid Escalating Attacks In Middle East

Mumbai, September 10: Indian shares edged down at pre open signalling a lower start for benchmarks as oil stayed above $100 a barrel as US and Iran escalated attacks on each other. 

Nifty 50 declined 0.11% while Sensex declined 0.12% at pre open. 

Investors also awaited US producer price inflation data due on Thursday and consumer price inflation figures due on Friday. The readings could influence expectations for the Federal Reserve’s September 15-16 policy meeting.  

Indian equities extended their recent slide on Wednesday, with the Nifty and Sensex closing at their lowest levels in three months as Brent crude climbed above $100 a barrel. The benchmarks have now ended lower in seven of the past eight sessions, shedding around 3.1% each over the period.  

Foreign portfolio investors offloaded shares worth ₹583 crore on Wednesday, provisional NSE data showed. Domestic institutional investors provided some cushion, pumping ₹1,509 crore into equities during the session. 

Hindustan Zinc has entered into a six-year transportation agreement with MFL India for deploying 30 electric trucks.  

Wipro, an IT services major, and CrowdStrike have launched a CISO Command Centre aimed at strengthening and streamlining enterprise cybersecurity operations.  

Northern Coalfields, a subsidiary of Coal India, reported an improvement in production and dispatches as monsoon conditions eased.  

Shakti Pumps won new orders worth ₹236 crore. 

Asia declines 

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9%, while Japan’s Nikkei declined 0.8% and South Korea’s Kospi slipped 1%. Investors remained cautious as intensifying tensions in the Middle East raised concerns over disruption to energy supplies and global trade. 

Oil remained the biggest pressure point for markets. Brent crude futures rose to around $101.1 a barrel in Asian trade, after crossing the $100 mark on Wednesday for the first time since July. 

The latest rise came as investors assessed the possibility of a wider and more prolonged conflict in the region. An escalation involving Saudi Arabia and the Houthis in Yemen has added to concerns over the security of energy flows, further clouding the global economic outlook. 

Wall Street ends lower 

US stocks also fell on Wednesday as the jump in crude prices revived inflation concerns and pushed Treasury yields higher. 

The latest move came after the US Treasury announced a $6 billion buyback of longer-dated bonds, below the $8 billion-$10 billion purchase some investors had expected. 

Higher yields can weigh on equity valuations while also complicating the outlook for US monetary policy, particularly if elevated energy prices feed into inflation. 

Inflation data, Fed in focus 

Investors will now turn to US producer price inflation data due on Thursday and consumer price inflation figures due on Friday. The readings could influence expectations for the Federal Reserve’s September 15-16 policy meeting. 

Fed funds futures were pricing in about a 60% probability of a rate hike next week, adding to the market’s sensitivity to incoming inflation data. 

Meanwhile, the yen has strengthened sharply in September as expectations of a Bank of Japan rate hike have increased, adding to volatility across currency and bond markets. 

Source

• Exchanges