Pre-open Trade Signals Weak Open For Indian Shares As Oil Slip Fails To Inspire Investors

Mumbai, May 13: Indian shares traded lower at pre open signalling a weak start for benchmark indices after four sessions of steep losses as a slip in oil prices refused to lift sentiment with investors waiting for updates on Iran-US negotiations even as American president headed to China ‌for a summit.

Nifty 50 was down 0.63% at pre open whereas Sensex was trading lower by 0.30%

Moreover, this comes after US consumer prices climbed sharply in April for a second consecutive month, pushing annual inflation to its highest level in nearly three years and reinforcing expectations that the Federal Reserve will hold interest rates steady for some time. Back home, domestic retail inflation edged up to 3.48% in April.

Also, the Indian government has increased import duties on gold and silver to 15% from 6% in a move aimed at discouraging overseas purchases of the precious metals and reducing pressure on foreign exchange reserves. Spotlight will fall on Dr Reddy’s Laboratories, Berger Paints India and Tata Power, all of which have released earnings, with Reddy’s and Tata posting a drop and Berger recording a rise.

Global cues remained subdued and uneven. Asian markets traded mixed on Wednesday, with the MSCI Asia-Pacific index excluding Japan slipping 0.5% as investors weighed hotter-than-expected US inflation data alongside rising geopolitical risks in the Middle East. South Korean equities gained about 1.5%, while Japan’s Nikkei also edged higher. In contrast, Hong Kong’s Hang Seng drifted lower. Overall sentiment remained uneven as concerns over elevated oil prices and continued disruptions in the Strait of Hormuz kept inflation expectations sticky and reinforced fears of delayed US Federal Reserve rate cuts.

Wall Street ended lower overnight, with the S&P 500 and Nasdaq pulling back from recent highs as stronger inflation readings tempered expectations of near-term policy easing. Technology stocks led the decline, particularly semiconductors, while broader market breadth remained weak. Rising energy prices linked to Middle East tensions further pressured sentiment, prompting investors to reassess the timing and scale of potential Federal Reserve rate cuts.

Source:

• Exchanges