Nifty Rises 0.2%, Sensex Flatlines at Pre-open as Shares Stare at Mixed Start Amid Middle East Uncertainty

Mumbai, July 1: Indian shares were mixed at pre-open as Iran ruled out meeting U.S. envoys, reducing hopes for an early diplomatic breakthrough and renewing concerns over geopolitical tensions in the Middle East. 

Nifty 50 rose 0.2% and the Sensex advanced 0.06% at pre-open, signalling a mixed start for benchmarks. 

To be sure, both benchmarks have been on a losing streak over the past two sessions.  

Spotlight will be falling on KPIT Technologies which flagged a sequential slowdown in both dollar-denominated revenue and operating profit for the June quarter after unexpected moves by some European OEMs, prompted by profit warnings and a deteriorating business environment, disrupted demand. Kotak Mahindra Bank has agreed to take over Deutsche Bank’s consumer banking and wealth management operations in India, strengthening its retail franchise. Citi Research turned bullish on Titan Company, Havells India and Page Industries, raising all three stocks to “buy” from “neutral” on expectations of improved growth prospects. 

As for global cues, Asian equities traded mixed in early deals. Japan’s Nikkei 225 gained 0.3% as the yen hovered near multi-decade lows against the dollar, while MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.9%. In contrast, South Korea’s Kospi declined 1.9%. 

Sentiment across the region remained guarded as investors assessed the outlook for U.S. monetary policy, with markets closely watching upcoming economic data for clues on the Federal Reserve’s next move. 

The mixed trading in Asia followed a robust finish on Wall Street, where the S&P 500 and Nasdaq Composite capped June with their strongest quarterly gains since 2020. The Dow Jones Industrial Average also ended the session in positive territory. 

U.S. equities drew support from optimism around artificial intelligence-driven earnings, easing trade-related concerns and expectations that the Federal Reserve could begin cutting interest rates later this year if inflation continues to moderate. Investors shrugged off quarter-end portfolio adjustments and shifted their attention to Thursday’s U.S. non-farm payrolls report, which is expected to provide fresh guidance on the interest-rate outlook. 

Oil prices moved higher after Iran ruled out meeting U.S. envoys, reducing hopes for an early diplomatic breakthrough and renewing concerns over geopolitical tensions in the Middle East. 

Both Brent crude and West Texas Intermediate (WTI) futures rebounded, recovering part of the losses seen after the Israel-Iran ceasefire. While prices remain below the recent conflict-driven highs, the uptick in crude could weigh on sentiment in import-dependent economies such as India by reviving concerns over inflation and a higher import bill. 

Source

• Exchanges