Pre-Open: Nifty, Sensex Signal Firm Start as Oil Eases; Election Trends Lend Support

Mumbai, May 4: Markets traded higher at pre-open signalling shares could see a positive start as oil prices backed off from peaks amid easing tensions in the Middle East and vote counting began showing DMK leading in Tamil Nadu and TMC locked in a battle with BJP for Bengal.

Nifty was trading at 24,058 in pre-open, which is higher than Thursday’s close of 23,997.55 with Friday being a market holiday. Similarly, Sensex was at 77,665, again above Thursday’s close of 76,913.50. All of this points to the benchmark indices opening above their Thursday close, suggesting a positive start for shares.

The Gift Nifty futures also displayed a positive trend, trading at 24,251.50, which is again above Nifty’s Thursday close of 23,997.55, the move suggesting a positive start for shares.

Sentiment Improves

The improvement in sentiment comes as crude oil prices pulled back from elevated levels, offering relief to import-heavy economies like India. The recent spike in oil—triggered by geopolitical flare-ups in the Middle East—had rattled global markets and raised concerns around inflation, current account pressures and currency stability. The partial cooling of tensions has helped temper those worries, at least for now, allowing risk appetite to cautiously return.

Elections Eyed

Domestic political cues are also in focus, with early counting trends from key state elections drawing investor attention. Initial indications showed the DMK holding an edge in Tamil Nadu, while West Bengal appeared headed for a tighter contest, with the TMC and BJP locked in a close battle. While markets typically avoid sharp reactions to state-level outcomes, a perception of political continuity or stability can offer incremental support to sentiment.

That said, the positive start comes after a weak close in the previous session. Both the Nifty and the Sensex had declined around 0.7% on Thursday, dragged lower by surging oil prices and escalating geopolitical tensions. The rupee, too, had come under pressure, sliding to a record low as crude spiked and risk aversion intensified.

Against this backdrop, today’s early gains may be seen more as a recovery from oversold conditions rather than the start of a decisive uptrend. Global cues remain mixed, with US futures largely flat and investors staying cautious ahead of key economic data and further developments on the geopolitical front.

In that sense, while the opening is likely to be positive, sustainability of gains will hinge on whether crude continues to cool and whether global risk sentiment holds up. For now, the market seems set to begin the session on a firmer footing—but with one eye still nervously tracking oil and geopolitics.

Source:

• https://www.nseindia.com/