Nifty Flatlines As Sensex Edges Up At Pre-Open Signalling Subdued Start After Rebound

Mumbai, August 21: Indian shares were subdued at pre open signalling a muted start for benchmarks which ended a losing streak yesterday. 

Nifty 50 rose 0.05% and Sensex advanced 0.2% at pre open.  

The benchmark indices staged a rebound in the previous session, with the Nifty snapping a seven-session losing run and the Sensex halting its four-session decline. Despite the recovery, both indices remain 0.6% lower for the week.  

Foreign portfolio investors reversed course on Thursday, emerging as net sellers after two consecutive sessions of buying and pulling out ₹583 crore from Indian equities. Meanwhile, domestic institutional investors provided strong support, pumping in ₹3,538 crore, according to provisional NSE data.  

Spotlight will fall on Manipal Health which reported a rise in adjusted quarterly profit, helped by strong demand for complex-care services.  

RailTel Corporation secured a ₹165-crore work order from Western Coalfields.  

Saatvik Green Energy’s subsidiary received a ₹190-crore order to supply solar photovoltaic modules, with execution scheduled by March 2027.  

Anant Raj received RERA registration for a luxury residential project in Gurugram, offering 1.22 million square feet of development potential. 

Asian Markets 

Asian equities traded mixed on Friday, with markets largely headed for weekly losses as renewed selling in global bonds kept investors cautious. Japan’s Nikkei slipped 0.3%, while South Korea’s Kospi advanced 0.9%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.1%. 

The cautious mood comes as US Treasury yields resumed their upward move following a brief respite after the US government’s intervention in the bond market. The 30-year Treasury yield climbed back to 5.25%, while the 10-year yield touched 4.71%. 

Higher US bond yields typically weigh on emerging-market assets by making dollar-denominated investments more attractive. They can also put pressure on equity valuations by increasing the discount rate used to value future corporate earnings. 

Wall Street 

US stocks ended sharply lower in the previous session, with all three major benchmarks falling as rising Treasury yields and higher oil prices revived concerns over inflation and interest rates. 

The Dow Jones Industrial Average declined 1.32%, while the S&P 500 fell 0.87%. The Nasdaq Composite lost 1%. 

Sentiment was further hit by a sharp selloff in Walmart after the retailer reported weak quarterly comparable-sales growth. Walmart shares plunged 9.2%, with higher gasoline prices emerging as one factor affecting consumer spending. Consumer staples and consumer discretionary stocks were among the weakest-performing segments. 

US stock futures, however, edged higher in early Friday trade, with S&P 500 futures gaining 0.12% and Nasdaq futures rising 0.3%. The modest recovery in futures provided some support to Asian markets. 

Oil Prices 

Crude oil remains a key risk for Indian equities. Brent crude rose to a one-month high of $94.71 a barrel before paring gains. It was last down 0.02% at $93.76 a barrel but remained more than 5% higher for the week. US West Texas Intermediate crude eased 0.17% to $86.68. 

The rally in oil prices has been driven by renewed concerns over potential supply disruptions following a diplomatic deadlock in the Gulf. Expectations of tougher US sanctions on Iran have also reduced hopes of a deal that could facilitate the reopening of the Strait of Hormuz, keeping supply risks elevated. 

For India, crude prices above the $90-a-barrel mark remain a significant concern given the country’s dependence on imported oil. A prolonged rise in energy costs could increase inflationary pressures, squeeze corporate margins and weigh on the rupee. 

Source

•  Exchanges