Markets Set for a Flat Start on Thursday

Mumbai, Sept 9: Gift Nifty signalled a flat opening for Indian equities on Thursday, with the index trading at 23,490.50, unchanged from the previous close, as of the last available intraday price. The near-month Gift Nifty future, expiring September 29, had opened at 23,659.50 and touched an intraday high of 23,684.50, before sliding through the session to a low of 23,472, extending the weakness that dragged Indian markets to a three-month low on Wednesday. The October 27 contract was similarly flat, unchanged at 23,600.00. The steady intraday slide through Wednesday’s session, despite the flat headline print, suggests traders remain cautious heading into Thursday’s open, with crude oil breaching $100 a barrel continuing to dominate sentiment. 

Crude Oil Prices Jump 

Oil prices surged further on Wednesday, with WTI crude jumping 2.31 per cent to $95.18 a barrel and Brent crude rising 2.75 per cent to $100.61, breaching the psychologically important $100 mark. Murban crude posted the steepest gain among major benchmarks, up 5.87 per cent to $117.27, while heating oil climbed 3.52 per cent and the OPEC basket price added 1.13 per cent to $107.46. Natural gas was the lone decliner, easing 0.99 per cent to $2.887. The broad-based rally across crude benchmarks reflects intensifying concern over Gulf supply disruptions as the Iran-US conflict continues to widen. 

Asian Markets 

Asian markets closed mostly lower on Wednesday, with Japan’s Nikkei 225 falling 0.19 per cent and Pakistan’s KSE 100 dropping 0.57 per cent, while Vietnam’s HNX 30 declined 0.79 per cent and Thailand’s SET slipped 0.25 per cent. Australia’s All Ordinaries and Malaysia’s KLCI were also weaker, down 0.13 per cent and marginally lower respectively, while Hong Kong’s Hang Seng fell 0.17 per cent and Indonesia’s Jakarta Composite eased 0.12 per cent. Mainland China’s Shanghai Composite was the lone gainer, adding 0.28 per cent. The broadly weaker close came as surging crude prices weighed on regional risk appetite. 

Sensex, Nifty Fall for Third Session As Oil Boils Past $100 

Back home, Indian equity benchmarks extended their losing streak to three sessions on Wednesday, falling to a three-month low as oil breached $100 a barrel. The Sensex ended 813.35 points, or 1.08 per cent, lower at 74,764.23, while the Nifty 50 declined 203.60 points, or 0.86 per cent, to close at 23,431.50. IT stocks bore the brunt of the selling, with the Nifty IT index falling more than 3 per cent, while gains in metal and energy shares offered limited support. 

The above Gift Nifty opening signal is based on current macro and geopolitical conditions holding steady overnight. Should the Iran war, crude oil prices or global risk sentiment shift meaningfully before trade resumes at 9:15 am, the actual opening could differ materially from what Gift Nifty is currently indicating. India’s benchmark equity indices had already been on the back foot through the week, with Wednesday’s decline marking the third consecutive session of losses, as escalating Middle East tensions, including Iranian-backed Houthi strikes on Saudi cities and retaliatory attacks between Iran and the US, kept crude prices on an upward march and dented risk appetite across Indian equities. 

Market breadth remained weak on Wednesday, with 2,372 shares declining against 1,815 advancing and 174 remaining unchanged on the NSE. Infosys, HCL Technologies, Tech Mahindra and Wipro were among the biggest Nifty laggards, as selling in IT stocks came amid broader concerns over global markets and the potential impact of elevated crude prices on inflation and economic growth. Nifty Realty was another major casualty, falling around 2 per cent, while the Media, FMCG and Private Bank indices each shed nearly 1 per cent. 

The Nifty Metal index emerged as the strongest sectoral performer, gaining 1.8 per cent, with Adani Enterprises, Max Healthcare, Adani Ports, Coal India and Tata Steel among the leading Nifty gainers. The Nifty Energy index also ended higher, rising 0.6 per cent, providing some support to the broader market amid the sharp decline in other sectors. The broader sectoral picture remained mixed on the day, with metal and energy the only two indices ending in positive territory even as the bulk of the market stayed under pressure. 

Source

•  NSEIX.com
• OilPrice.com