Markets Likely to Open Marginally Lower on Monday on Global Cues

Mumbai, May 18: Domestic markets are expected to open marginally lower-to-flat on Monday tracking weakness in their Asian peers amid rising geopolitical tensions between Iran and the US. Bulls are likely to remain on the defensive at the start of the day’s trade as concerns around the US-Iranian standoff linger.

Gift Nifty, a popular tool among traders to gauge Nifty 50’s opening direction snapped below its previous close of 23,755 and stood at 23,566.50 at 8:09 am on May 18. It has dropped 188.50 points or 0.79% from its last close. Markets are likely to gap down when they open for trading on Monday.

Iranian Conflict

US President Donald Trump on Sunday asked Iran to quickly resume talks on its nuclear programme and threatening “they won’t exist” if it failed to comply, CNN reported on Monday. Trump made the comments on Twitter following meetings with his top national security aides Vice President JD Vance, Secretary of State Marco Rubio and CIA Director John Ratcliffe. He has urged Iran to return to nuclear talks for weeks but said Sunday he is becoming increasingly impatient with Tehran and remains angry that Iran has allowed global oil prices to remain high by keeping the Strait of Hormuz closed.

Pentagon officials have also reportedly drawn up a range of military target lists that US forces would use if Trump ordered strikes on energy, financial and other infrastructure sites inside Iran.

Asian Markets

Asian stocks were mostly weaker on Monday tracking losses in Europe and Wall Street. Japan’s Nikkei 225 fell 0.92% and Hong Kong’s Hang Seng index dropped 1.38%. Indonesian JSX Composite was down nearly 2%. Australia’s S&P ASX All Ordinaries index also traded lower by 1.47%.

US Markets

The Dow Jones Industrial Average fell 1.07% to close at 49,526.17. The S&P 500 declined 1.24% to close at 7,408.50. The Nasdaq Composite closed 1.54% lower at 26,225.15. Higher oil prices and rising US Treasury yields impacted investor sentiment on Wall Street on Friday.

Oil Continues Higher

Oil prices rose on Monday with Brent crude jumping $2.03, or 1.86%, to $111.29 a barrel, reaching an intraday high of $112. It’s the highest level Brent reached since May 5. US West Texas Intermediate crude rose $2.31, or 2.19%, to $107.73 a barrel after hitting an intraday high of $108.70. Both Brent and WTI rose more than 7% last week.

Friday Closing

On Friday, benchmark indices pared their gains and ended in the red led by losses in metal, oil-linked, PSU bank and realty stocks. The S&P BSE Sensex declined 160.73 points or 0.21% to settle at 75,237.99. The NSE Nifty 50 slipped 46.10 points or 0.19% to end the session at 23,643.50. A total of 2,381 stocks ended lower as compared to 1,631 advances on the National Stock Exchange.

Source:

• nseindia.com