Indian Shares Jump At Pre-Open As Benchmarks Poised For Positive Start Amid Iran-US Peace Hopes

Mumbai, August 3: Indian shares traded higher at pre open signalling a positive start for benchmarks as oil slumped on hopes of a revival in US-Iran diplomacy after US President Donald Trump announced talks with Iran would take place on Monday. 

Nifty 50 rose 0.6% and Sensex advanced 0.7% at pre open while Gift Nifty jumped 1%.  

Indian benchmark indices extended their winning streak in July, with the Nifty 50 and Sensex both advancing for a second straight month. Strong corporate earnings and renewed buying by foreign investors helped the domestic market weather fluctuations in crude oil prices amid heightened tensions in the Middle East.  

Investors are likely to closely track the Reserve Bank of India’s monetary policy review on August 5, with the central bank widely expected to maintain the status quo on interest rates. The RBI’s stance comes against a global backdrop of shifting monetary policies, while relatively contained domestic inflation gives policymakers room to hold borrowing costs steady despite volatile international crude prices.  

Maruti Suzuki India is likely to remain in focus after the country’s largest carmaker delivered a better-than-expected first-quarter profit, supported by robust demand for SUVs and entry-level cars following tax reductions announced last year. The automaker also indicated that operating margins could improve over the coming quarters.  

ITC, meanwhile, reported a 27% year-on-year decline in quarterly profit, with higher cigarette taxes weighing on its core cigarettes business and denting overall earnings.  

Urban Company posted a consolidated loss of Rs 92.12 crore for the quarter ended June, despite a strong 44% year-on-year jump in revenue to Rs 530 crore.  

Automobile stocks are also expected to attract investor attention after several major automakers released their July sales figures over the weekend, providing fresh indications of demand trends across the sector. 

Asian Markets Under Pressure 

Asian equities traded mostly lower in early deals, with Japan’s Nikkei 225 falling 1.7% and South Korea’s KOSPI declining 4.2%. The sell-off came as investors remained cautious after a volatile July and reassessed stretched valuations in technology and artificial intelligence-related stocks. 

Hong Kong’s Hang Seng bucked the trend, edging up 0.15%. The broader weakness across Asian markets could weigh on domestic sentiment at the open, although gains in US futures and softer oil prices offered some support. 

US Futures Point To Firm Opening 

US stock futures traded higher, signalling a positive start for Wall Street. S&P 500 futures rose around 0.5%, while Nasdaq 100 futures gained nearly 0.9%, providing some relief to global risk sentiment. 

The gains came despite continued concerns over high technology valuations and heightened volatility in global equity markets. Investors are also awaiting fresh economic data and corporate earnings updates for further clues on the outlook for the US economy and interest rates. 

Crude Oil Prices Fall 

Crude oil prices declined sharply, with Brent futures falling more than 5% to around $83 a barrel after indications of possible diplomatic engagement between the US and Iran raised hopes of easing tensions in West Asia. 

The decline in oil prices is positive for India, one of the world’s largest crude importers. A sustained fall in energy costs could ease pressure on the country’s import bill and inflation while improving margins for oil-consuming industries. 

Source

•  Exchanges