Pre-open Cues Signal Flat to Lower Start for Dalal Street as Iran Tensions Ease 

Mumbai, May 19: Pre-open trade signaled a flat to lower start for benchmark indices as Middle East tensions showed a slight ease with America hinting at a nuclear deal with Iran.

Nifty 50 was down 0.41% at pre-open while the Sensex was down 0.06%.

Gift Nifty futures showed an uptick, trading at 23,639.50 which is below Nifty’s previous close of 23,649.95.

The government on Tuesday raised petrol and diesel prices by around ₹0.90 per litre, marking the second increase within a week, as the Centre moved to offset losses stemming from the recent surge in crude oil prices. The spotlight will fall on the Adani Group at the start of the markets after the US moved to drop criminal fraud charges against billionaire chairman Gautam Adani, while separately resolving alleged Iran sanctions violations linked to one of the conglomerate’s companies. Also hogging the spotlight will be Royal Enfield parent Eicher Motors and JSW Steel. To be sure, Eicher Motors has secured approval from Andhra Pradesh for a 215.7-acre land parcel for a proposed greenfield expansion project involving an investment of ₹2,500 crore. And, GQG Partners and SBI Mutual Fund acquired stakes in JSW Steel, while promoter group entity JSW Energy trimmed its holding.

As for global markets, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.07%, while South Korea’s Kospi plunged 4.26%. Japan’s Nikkei slipped 0.64%, despite hopes of a diplomatic breakthrough after US President Donald Trump paused a planned military strike on Iran. Hong Kong’s Hang Seng, however, edged up 0.15%.

Brent crude eased nearly 2% to hover around $110 a barrel after Tehran proposed a peace initiative, though sentiment remained cautious following recent drone attacks in the Gulf region.

Even with some cooling in oil prices, investors continued to grapple with fears of persistent inflation and elevated borrowing costs. The benchmark US 10-year Treasury yield stood at 4.5974% after touching its highest level since early 2025, fueling concerns that global central banks may need to keep interest rates higher for longer if energy prices remain elevated.

US markets closed mostly in the red overnight as rising bond yields and oil-driven inflation concerns weighed on equities. Nasdaq futures were down 0.37% as investors reassessed expensive AI-linked valuations amid a sharp rise in global borrowing costs.

European equities also stayed under pressure. The pan-European STOXX 600 swung between gains and losses before ending 0.5% higher in a choppy session. Concerns over inflation, surging energy prices and the continuing Iran conflict kept risk appetite subdued, although select counters such as Publicis, Deutsche Boerse and Ryanair managed gains.

Source: Exchanges