Markets Set for Flat-to-Positive Start as RBI Holds Rates, Iran-Oman Talks Progress 

Mumbai, Aug 6: Indian equity markets look set to open marginally higher on Thursday, with Gift Nifty signalling a firm but cautious start to trade. The mood on Dalal Street is being shaped by a confluence of global and domestic cues: reports of progress in talks between Iran and Oman over control of the Strait of Hormuz and benchmark indices back home that finally ticked higher on Wednesday after a session marked by volatility around the new Closing Auction Session (CAS). Adding to the constructive backdrop, the Reserve Bank of India kept its policy repo rate unchanged, reinforcing a sense of stability even as global geopolitical risk remains elevated. 

Gift Nifty futures for the 25 August series were trading at 24,689.50, up 28 points or 0.11 per cent, as of 7:39 am on Thursday. The uptick, though modest, points to a positive but measured start for the Nifty 50, with traders likely to stay watchful of global cues through the session rather than chase an aggressive open. 

Iran War 

On the Iran war, a proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, sources told Reuters, marking one of the biggest concessions to Iran since the conflict began. Iran is seeking fees of 5 to 7 per cent on cargo values for ships using the strait, against Oman’s proposal of around 3 per cent and Washington’s insistence on no fees at all. Iran has reported more than 3,400 deaths since the war with the US and Israel began on February 28, against 18 US military personnel killed. President Donald Trump said he would prefer a negotiated settlement, even as US officials have insisted they would never cede control of the world’s most important energy trade route to Tehran. 

Asian Markets on Thursday Morning 

Asian markets were mixed on Thursday morning. Japan’s Nikkei 225 fell sharply, down 1.70 per cent, while Hong Kong’s Hang Seng slid 1.87 per cent, tracking unease over the region’s growth outlook. Australia’s All Ordinaries and Malaysia’s FTSE Bursa KLCI both rose 0.57 per cent, while Pakistan’s KSE 100 jumped 1.66 per cent. China’s Shanghai Composite edged up 0.19 per cent, reflecting a broadly cautious but not uniformly negative regional mood. 

US Markets 

US markets ended Wednesday on a mixed note. The Dow Jones Industrial Average rose 0.49 per cent to 54,349.12, while the Nasdaq Composite slipped 0.83 per cent to 26,363.44 on weakness in technology names. The S&P 500 eased 0.17 per cent to 7,723.55, even as the NYSE Composite added 0.21 per cent. Canada’s S&P/TSX Composite outperformed with a 0.96 per cent gain, underscoring divergent sentiment across North American markets. 

Oil Prices 

Oil prices edged higher, with WTI crude up 0.33 per cent to $75.47 a barrel and Brent crude gaining 0.44 per cent to $79.80 a barrel. Murban crude led the gains, rising 1.41 per cent to $77.94 a barrel, outpacing both benchmark grades. The uptick comes even as natural gas slipped 0.56 per cent to $2.673 and gasoline eased 0.35 per cent to $2.829, pointing to a mixed energy complex overall. Crude’s gains suggest some renewed buying interest even as broader sentiment around the Iran-Oman talks has kept a lid on sharper price moves. 

Sensex, Nifty on Wednesday 

Back home, the Sensex and Nifty ticked higher on Wednesday after the new Closing Auction Session erased the Nifty’s earlier losses, while the RBI’s decision to hold rates steady also supported sentiment. The BSE Sensex rose 0.19 per cent to close at 78,581, while the NSE Nifty 50 added a modest 0.04 per cent to settle at 24,624.65. The Nifty had been trading in the red heading into the 3:15 pm pre-close before the auction-driven price discovery mechanism helped it recover into positive territory. Market breadth stayed constructive, with 2,219 stocks advancing against 1,844 declining on the NSE, even as gains in metal and auto stocks did much of the heavy lifting. 

Source

•  nseindia.com