Pre-Open Points To Lower Start As Oil Continues To Rise

Mumbai, September 30: Indian shares decline at pre open signalling a lower start for benchmarks as oil continued to rise. 

Nifty 50 declined 0.4% while Sensex declined 0.17% at pre open. 

The latest Nifty 50 rebalancing takes effect on Wednesday, putting the spotlight on trading activity as investors assess whether the closing auction session can handle the potentially higher volume arising from index-linked flows. 

BSE will enter the benchmark index, replacing Wipro as part of the semi-annual review by the National Stock Exchange of India. 

The changes are significant for market participants as passive funds managing around $97 billion track the Nifty 50, potentially resulting in sizeable flows around the effective date of index changes. 

The rebalancing comes as Indian equities head towards a weak September, with the benchmark indices down around 5.8% so far this month and on track for their steepest monthly decline since March.  

Foreign portfolio investors (FPIs) were aggressive sellers on Tuesday, pulling out Rs 9,980 crore from Indian equities in their biggest single-day outflow in around four months. September’s net selling has now reached $2.7 billion, while cumulative withdrawals for 2026 stand at $26.75 billion.  

Power Mech Projects secured an order worth Rs 549 crore from Moxie Power Generation, a unit of the Adani Group.  

KSB, a pumps and valves maker, has won a $12.4 million export contract to supply a boiler feed pump package.  

Elevate Campuses, ArMee Infotech, Swastika Infra, and Adroit Industries are scheduled to list on the exchanges on Wednesday, marking their debut on the public market.

Asian Markets Trade Mostly Higher 

The MSCI Asia-Pacific index excluding Japan rose 0.4% in early trade, while Japan’s Nikkei climbed 1.3%. South Korea’s Kospi, however, declined 0.3%. 

US equity futures were largely steady, with Nasdaq futures flat and S&P 500 futures up 0.17%. European futures also traded higher, with EUROSTOXX 50 and DAX futures advancing 0.7% and 0.6%, respectively. 

The gains in Asian equities came despite continued pressure in global bond markets. The benchmark 10-year US Treasury yield was around 5.24%, close to its highest level since 2007, and was on course to rise by nearly 50 basis points in September. 

Wall Street Ends Lower 

US stocks ended lower in the previous session as rising Treasury yields weighed on investor sentiment. The Dow Jones Industrial Average fell 0.26%, while the S&P 500 declined 0.17% and the Nasdaq Composite shed 0.08%. 

The 10-year Treasury yield climbed to 5.293%, its highest level since June 2007, while the 30-year yield touched 5.6206%, its highest since June 2002. 

Investors remained focused on upcoming US inflation and labour-market data for clues on the Federal Reserve’s interest-rate trajectory. 

Oil Prices Remain Key Risk 

Crude oil remained a key concern for Indian markets. Brent crude futures rose 0.5% to $103.1 a barrel on Wednesday, while US West Texas Intermediate crude declined 0.02% to $89.4. 

Both benchmarks were headed for monthly gains amid concerns over prolonged supply disruptions linked to the Middle East conflict. 

Elevated crude prices remain a key risk for India given the country’s dependence on imported oil. Sustained high prices could increase the import bill, add to inflationary pressures and weigh on corporate margins. 

Source

• Exchanges