Indian Shares Subdued At Pre-Open As Benchmarks Set For Muted Start Amid Elevated Oil

Mumbai, September 22: Indian shares were muted at pre open signalling a subdued start for benchmarks as oil prices remained elevated. 

Nifty 50 rose 0.07% while Sensex advanced 0.13% at pre open.  

The Nifty 50 has recovered 1.3% over the past four sessions, supported by softer crude prices and buying in stocks that were hit during the recent market decline.  

However, foreign portfolio investors have continued to remain a drag on sentiment. They were net sellers of Indian equities worth Rs 576 crore on Monday, according to provisional exchange data, extending their selling streak to seven of the past eight sessions.

Augmont Enterprises, a recently listed precious metals management company, posted a decline of more than 15% in net profit for the June quarter, despite revenue growth of around 30% year-on-year.  

Mastercard Asia/Pacific is likely to offload its entire 4.31% holding in fintech company Pine Labs through a block deal at a discount of 7.3% to the previous close, according to media reports.  

Waaree Energies has secured an order from a solar developer to supply 2 GW of solar modules. 

Asia Advances 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3% in early trade. South Korea’s Kospi jumped 1.8%, while Taiwan’s Taiex gained 1%, led by technology and artificial intelligence-related stocks. Chinese equities also advanced, with the blue-chip CSI300 index rising 0.6% and Hong Kong’s Hang Seng gaining 0.6%. Japan’s markets were closed for a holiday. 

The gains came as investors took cues from a strong session on Wall Street, where technology stocks continued to drive broader markets higher. 

Nasdaq Hits Record High 

The Nasdaq Composite closed at a record high on Monday as investors returned to AI and semiconductor stocks. The S&P 500 gained 1.5%, while the Dow Jones Industrial Average advanced 0.7%. 

Chip stocks rallied sharply, with Intel and Arm Holdings among the prominent gainers, while Advanced Micro Devices crossed the $1 trillion market-capitalisation mark. 

The positive tone was also supported by a retreat in US Treasury yields. The benchmark 10-year Treasury yield slipped below the 5% level, easing some pressure on equity valuations. Nasdaq futures rose 0.3% in Asian trade, pointing to a firm start for US stocks later in the day. 

Oil Prices Remain Key Trigger 

Crude oil prices remained a key macro trigger for global markets. Brent crude futures rose 1% to $101.4 a barrel on Tuesday after falling more than 3% in the previous session, while US crude prices gained 0.8%. 

The rebound came after oil prices declined on signs of possible progress in Middle East diplomacy, including expectations of talks between the US and Iran at the United Nations this week. 

For India, crude remains a crucial market variable given the country’s dependence on imported oil. Any sustained moderation in prices could ease concerns over inflation, the trade deficit and input costs, while a renewed rise could weigh on sentiment. 

Source

• Exchanges