Pre-Open Points to Flat Start for Nifty, Sensex as Asian Selloff Offsets Softer Oil

Mumbai, June 23: Indian shares traded flat at pre-open as Asian shares slid after Wall Street ended mixed even as crude prices stayed soft and Middle East progressed towards peace. 

Nifty 50 traded 0.02% higher while Sensex edged up 0.05% at pre-open even as Gift Nifty edged down 0.07%. 

To be sure, Sensex and Nifty have risen in six out of seven sessions.  

Yesterday, the benchmark indices rebounded from Friday’s weakness, with the Sensex rising 0.38% and the Nifty 50 gaining 0.37%. 

Going ahead, spotlight will be falling on Bharat Electronics, Syrma SGS Technology, Apar Industries, and JSW Infrastructure.  

Bharat Electronics has won fresh orders worth Rs 1,081 crore since May 25, strengthening its order pipeline and reinforcing demand momentum across its defence electronics business.  

Syrma SGS Technology has partnered Japan’s Kaga Electronics to set up an electronics manufacturing services (EMS) facility in India, aimed at expanding its manufacturing capabilities and tapping growing domestic electronics demand.  

Apar Industries said its subsidiary has signed a pact with Saudi Aramco Base Oil Company.  

JSW Infrastructure has launched a qualified institutional placement (QIP) of up to 230 million shares. The issue opened on Monday with a floor price of Rs 290.35 per share. 

As for global cues, Asian stocks declined sharply on Tuesday as investors reassessed the outlook for U.S. monetary policy. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4%, while Japan’s Nikkei shed 0.9%. South Korea’s Kospi was the worst performer, tumbling 4.6%. 

Investor sentiment weakened as traders raised expectations that the U.S. Federal Reserve may need to keep interest rates higher for longer, with the possibility of additional rate hikes later this year. 

The decline came despite signs of easing geopolitical tensions after Washington relaxed some sanctions on Iran and both countries agreed to continue technical discussions aimed at reaching a broader agreement. 

U.S. markets ended Monday’s session on a mixed note. The Dow Jones Industrial Average gained 0.29%, supported by advances in healthcare and industrial stocks. In contrast, the S&P 500 slipped 0.4%, while the Nasdaq dropped 1.3% amid profit-taking in large-cap technology shares. 

Alphabet was among the biggest drags on the Nasdaq, while investors remained cautious ahead of key U.S. inflation readings and further updates on negotiations between Washington and Tehran. 

Notably, seven of the eleven major S&P 500 sectors finished in positive territory, suggesting that the weakness was concentrated in technology and communication-services stocks rather than reflecting broad-based risk aversion. 

European equities were largely steady on Monday as investors weighed improving prospects for a U.S.-Iran agreement against lingering concerns over global growth and interest rates. 

The pan-European STOXX 600 index edged higher, with easing geopolitical tensions helping offset caution ahead of upcoming economic data releases. 

Crude oil prices rebounded modestly on Tuesday following a steep decline in the previous session. Brent crude rose 0.05% to around $77.9 per barrel after falling more than 3% on Monday as progress in U.S.-Iran talks eased fears of disruptions to oil shipments through the Strait of Hormuz. 

For India, lower crude prices remain a positive macroeconomic factor. Softer oil reduces imported inflation risks, supports the rupee and improves earnings prospects for fuel-sensitive sectors such as aviation, paints, chemicals and consumer goods. 

Source

• Exchanges