Pre-Open Points To Lower Start As Oil Hovers Above $110, Asia Declines

Mumbai, October 22: Indian shares declined at pre open signalling a lower start as oil hovered above $110 per barrel and Asian stocks declined after overnight gains on Wall Street.

Nifty 50 declined 0.16% and Sensex declined 0.04% at pre open.

Minutes of the latest monetary policy meeting released on Wednesday showed that members of India’s rate-setting panel saw scope for further interest rate increases to contain inflation, while cautioning against aggressive tightening that could hurt economic growth.

The Nifty 50 and BSE Sensex have declined 1.5% and 1.4%, respectively, so far this week.

Foreign portfolio investors (FPIs) purchased Indian equities worth Rs 1,022 crore on Wednesday, according to provisional exchange data, marking their second buying session in three trading days.

Investors will also track the $3.2 billion initial public offering (IPO) of Jio Platforms, which was fully subscribed within hours of opening on Wednesday as institutional demand drove strong interest in India’s largest-ever public issue.

Eternal reported quarterly revenue above market estimates, but its profit fell short of expectations as higher expenditure on expanding quick-commerce platform Blinkit weighed on earnings. The company expects Blinkit’s growth to accelerate from the December quarter, banking on greater stability in the competitive landscape.

Mahindra & Mahindra Financial Services posted higher revenue and profit for the July-September quarter, supported by robust growth in loan disbursements.

Bharat Electronics said it secured fresh orders worth Rs 1,011 crore since its previous disclosure on October 13.

Asian Markets Today

Asian equities declined in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.3%, putting it on course for a fourth consecutive week of losses. Japan’s Nikkei 225 slipped 1%, while South Korea’s Kospi declined 2.2%, reflecting weakening risk appetite despite overnight gains on Wall Street.

Investors weighed strong technology earnings against concerns over the scale and profitability of AI investments, alongside geopolitical uncertainty in the Middle East. Rising crude oil prices added to concerns about inflation and the potential impact on global economic growth.

US Markets

Wall Street closed higher on Wednesday, led by technology stocks, as quarterly results from SpaceX and AI server maker Super Micro Computer revived interest in AI-linked shares. The Nasdaq Composite rose 1.05% to 26,702.86, while the S&P 500 gained 0.58% to 7,757.17. The Dow Jones Industrial Average advanced 360.21 points, or 0.69%, to settle at 52,856.09.

SpaceX shares climbed 7.8% after the company reported its first profit as a publicly traded company. Super Micro Computer surged 9.6% after forecasting quarterly revenue and profit margins above analysts’ expectations, lifting peers Hewlett Packard Enterprise and Dell.

Meta Platforms also reported third-quarter revenue above expectations, although its proposed issuance of non-voting shares renewed questions about its AI spending plans.

However, the positive sentiment weakened in futures trading on Thursday, with S&P 500 futures down 0.5%. Investors remained cautious ahead of the US Federal Reserve’s policy decision, amid geopolitical risks and an ongoing stream of corporate earnings.

Crude Oil Prices Today

Crude oil prices extended gains amid concerns over potential supply disruptions in the Middle East. Brent crude futures rose 1.7% to $110.7 a barrel, while US West Texas Intermediate crude gained 1.4% to $98.5.

The gains came amid heightened regional tensions, including reports of Houthi attacks on Saudi Arabia and concerns over a possible renewed US-Israeli confrontation with Iran. Further escalation could threaten energy supplies and keep crude prices elevated.

Source:

• Exchanges