Indian Shares Flat At Pre-Open As Benchmarks Stare At Subdued Start

Mumbai, July 21: Indian shares traded flat at pre open suggesting a muted start for benchmarks as advancing Asian equities and easing oil prices after mediation efforts in the Middle East failed to inspire sentiment.  

Sensex went down 0.02% at pre open while Gift Nifty declined 0.2%.  

The Nifty 50 and Sensex fell 0.4% and 0.6%, respectively, on Monday, weighed down by losses in private-sector banks as quarterly results raised concerns over pressure on net interest margins.  

SBI Funds Management is set to command investor attention as the asset manager makes its stock market debut following a $1.03 billion IPO last week. Shares of Sobha could also be in focus after the real estate developer reported a fourfold jump in June-quarter profit. Investors will also track quarterly earnings from Bajaj Auto, TVS Motor Company, Granules India and Adani Total Gas, which are scheduled to announce their results later on Tuesday. 

Asia Higher 

Asian stocks advanced on Tuesday after mediation efforts in the Middle East helped push oil prices lower, easing concerns over the impact of the conflict on global inflation and economic growth. 

The MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25%, while Japan’s Nikkei rose 1.7% and South Korea’s Kospi jumped 3.3%. The decline in crude prices offered some relief to oil-importing economies, although investors remained watchful of developments in the Middle East and the possibility of renewed volatility in energy markets. 

The softer oil backdrop is positive for India, which imports a large proportion of its crude oil requirements. A sustained moderation in crude prices could ease pressure on the country’s trade deficit, inflation and the rupee, while benefiting sectors such as paints, aviation, chemicals and logistics. 

However, any fresh escalation in geopolitical tensions that sends oil prices sharply higher could weigh on Indian equities and revive concerns over inflation and corporate margins. 

US Markets 

Wall Street ended lower on Monday as investors weighed geopolitical uncertainty against expectations of a busy week of corporate earnings, particularly from major technology companies. 

The Dow Jones Industrial Average fell 0.59%, while the S&P 500 declined 0.19% and the Nasdaq Composite slipped 0.05%. 

The focus is now shifting towards earnings from megacap technology and semiconductor companies, with investors looking for evidence that the strong rally in artificial intelligence-linked stocks is supported by robust earnings and sustainable growth prospects. 

The earnings season is emerging as a key driver for global markets. Strong results and upbeat guidance from major technology companies could revive risk appetite, while disappointing numbers or cautious outlooks could trigger further profit-taking in richly valued technology and AI stocks. 

European Markets 

European equities closed slightly lower on Monday as investors remained cautious amid Middle East tensions and elevated oil prices, while positioning themselves ahead of upcoming technology earnings and the European Central Bank’s policy meeting. 

The STOXX 600 fell 0.3%, with travel and leisure stocks among the biggest decliners, while energy shares gained as crude prices remained elevated. 

European investors are also assessing the potential economic impact of higher energy costs. Any prolonged disruption to oil supplies could fuel inflationary pressures and complicate the outlook for interest rates, even as markets assess the prospects for monetary policy easing or tightening later in the year. 

Source

• Exchanges