Indian Shares Rise at Pre-Open as Benchmarks Set for Positive Start as Fed Fears Ease

Mumbai, July 3: Indian shares rose at pre-open signalling a positive start for benchmarks as Asian shares looked upbeat after softer than expected US jobs report calmed fears around the US central bank raising rates later this year.  

A lower US interest-rate environment generally makes emerging markets such as India more attractive to global investors. 

Nifty 50 rose 0.8% and the Sensex advanced 0.5% at pre-open while Gift Nifty increased 1%. 

To be sure, both benchmarks rose for a second day yesterday, helped by a sharp rebound in IT stocks.   

 Spotlight will be falling on Bajaj Finance as the non-bank lender reported a robust June-quarter business update, with new loan bookings climbing 20% year-on-year and assets under management expanding 24%, reflecting sustained credit demand. 

Punjab National Bank posted healthy operational growth for the April–June quarter, with domestic advances rising 11.7% from a year earlier, while deposits increased 8.6%. 

Avenue Supermarts, which operates the D-Mart retail chain, recorded a 15.1% year-on-year rise in standalone revenue for the first quarter, supported by steady demand.  

Marico, a consumer goods maker, projected consolidated revenue growth in the low-twenties percentage range for the June quarter, driven by strong momentum across its core domestic portfolio, digital brands and international business. 

As for global cues, Asian equities climbed after upbeat economic data from the region and growing expectations that the U.S. Federal Reserve will keep interest rates unchanged boosted risk appetite. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%. Japan’s Nikkei 225 advanced 0.7%, while South Korea’s Kospi jumped 3% as chipmakers rebounded. Investor sentiment also improved after business activity data showed Japan’s services sector returned to expansion, while China’s export orders expanded at the fastest pace in 20 months. 

The upbeat mood followed weaker-than-expected U.S. labour market data, which strengthened expectations that the Federal Reserve will keep policy rates on hold in the coming months. 

U.S. equities ended mixed overnight. The Dow Jones Industrial Average notched a record closing high, supported by gains in economically sensitive sectors, while the S&P 500 ended little changed. The Nasdaq Composite slipped 0.8% as semiconductor stocks remained under pressure amid continued volatility in AI-related counters. 

Investors largely looked past the softer jobs data, viewing it as reducing the likelihood of further monetary tightening by the Federal Reserve. 

European shares finished at a record closing high on Thursday as gains in industrial, healthcare and financial stocks outweighed weakness in AI-linked semiconductor companies. 

The pan-European STOXX Europe 600 index ended at an all-time closing high as investors welcomed signs of a cooling U.S. labour market, reinforcing hopes that major central banks could adopt a less restrictive policy stance. 

Oil prices rose modestly ahead of the long U.S. Independence Day weekend, although gains remained capped as markets monitored ongoing U.S.-Iran peace efforts. 

Brent crude traded around $72.1 per barrel, while U.S. West Texas Intermediate hovered near $68.9. The reopening of the Strait of Hormuz and higher crude exports from Gulf producers have eased supply concerns, limiting further upside despite lingering geopolitical risks. 

Source

•  Exchanges