Pre-Open Points To Muted Start As Elevated Oil Weighs On Sentiment  

Mumbai, August 11: Indian shares were subdued at pre open signalling a flat start for benchmarks as elevated crude prices weighed on sentiment amid uncertainty over the reopening of the Strait of Hormuz. 

Nifty 50 inched up 0.13% and Sensex edged up the same while Gift Nifty inched up 0.1%.  

Spotlight could fall on Adani Group stocks after a U.S. judge dismissed criminal charges against founder and Chairman Gautam Adani. The judge, however, raised concerns over the U.S. Justice Department’s decision to abandon the fraud and bribery prosecution. 

BSE is another stock likely to remain on investors’ radar after the National Stock Exchange announced that the exchange operator will replace Wipro in the benchmark Nifty 50 index. The change will take effect from September 30. 

Gland Pharma, a drugmaker, posted profit above expectations. 

Zee Entertainment Enterprises, a media company, reported a decline in June-quarter profit. 

Bharat Electronics, a defence electronics major, secured fresh orders worth Rs 541 crore. 

Vodafone Idea, a telecom operator, narrowed its first-quarter loss. 

Asian Markets 

Asian stocks were subdued on Tuesday as investors assessed developments in the Middle East and their implications for global energy markets. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%, while South Korea’s Kospi gained 0.8%. Japan’s Nikkei advanced 2%. 

The yen weakened towards 159 per dollar. And, the Reserve Bank of Australia was due to announce its monetary policy decision. 

The surge in oil prices has also refocused attention on U.S. inflation. Investors are awaiting Wednesday’s consumer price report for clues on the Federal Reserve’s policy path. A stronger-than-expected reading could revive expectations of a rate hike and weigh on risk assets. 

Wall Street 

U.S. stocks ended lower on Monday as uncertainty over a potential deal to reopen the Strait of Hormuz weighed on sentiment. The S&P 500 declined 0.06%, the Nasdaq Composite fell 0.32%, while the Dow Jones Industrial Average slipped 0.11%. 

The losses came after the S&P 500 closed at a record high on Friday, with profit-taking in technology stocks adding to the pressure. Nvidia fell 2.9%, while Intel dropped 4.1% after announcing plans to raise $15 billion through a share sale. 

However, U.S. stock futures turned marginally positive in Asian trade, providing a modestly supportive cue for global markets. Nasdaq futures rose 0.28%, while S&P 500 futures gained 0.093%. 

European Markets 

European equities remained close to record highs on Monday but lacked direction as investors weighed Middle East risks against a busy economic-data calendar. The pan-European STOXX 600 ended little changed at 660.45 points, while the energy sector gained 1.3% as crude prices rose for a fourth consecutive session. 

Investors in Europe are awaiting euro zone employment data and the U.S. inflation report for further clues on the global interest-rate outlook. A strong corporate earnings season has also helped underpin sentiment, limiting the impact of geopolitical concerns.