Pre-Open Points To Negative Start Amid Crude Climb On Middle East Uncertainty 

Mumbai, August 7: Indian shares fell at pre open signalling a negative start for benchmarks as crude climbed amid lingering uncertainty over the Middle East despite diplomatic progress. 

Nifty 50 fell 0.4% and Sensex fell 0.5% at pre open.  

Investors will be awaiting the June-quarter report cards of banking heavyweight State Bank of India (SBI), jewellery major Titan Company, and metals producer Hindalco Industries.  

Britannia Industries disappointed Street expectations after posting weaker-than-anticipated June-quarter earnings. Rising freight and fuel expenses, driven by the Middle East conflict, offset healthy demand for the company’s packaged food portfolio. 

Life Insurance Corporation of India (LIC) reported a 23% year-on-year jump in first-quarter profit, supported by robust growth in its group insurance business and improved margins as the insurer increased its focus on higher-value products.  

Apollo Tyres’ profit before tax and exceptional items rose nearly 9% in the June quarter. The tyre maker benefited from resilient demand across Asia-Pacific, the Middle East and Africa, along with higher product realisations following price increases. 

Asian Stocks Remain Under Pressure 

Most Asian markets traded in the red on Friday morning as investors balanced improving geopolitical developments against uncertainty over the global growth outlook. 

Japan’s Nikkei 225 fell nearly 1% as a stronger yen weighed on export-oriented stocks, while South Korea’s Kospi also lost close to 1%. The broader MSCI Asia-Pacific index excluding Japan was largely unchanged, reflecting a cautious mood before the release of the U.S. jobs report. 

In currency markets, the dollar remained soft against major peers, while U.S. Treasury yields moved in a narrow range. Crude oil prices, meanwhile, edged higher, adding to concerns over inflationary pressures in oil-importing economies such as India. 

Wall Street Pauses After Recent Rally 

U.S. stocks ended lower overnight as investors locked in profits following recent gains and shifted focus to Friday’s employment data. 

The Dow Jones Industrial Average dropped 0.85%, the S&P 500 declined 0.18%, while the Nasdaq Composites lipped a marginal 0.06%. 

Technology stocks remained the primary drag on the market after weaker-than-expected earnings from software firms AppLovin and Datadog disappointed investors. Semiconductor shares also traded lower, limiting broader market strength. 

Despite the decline, risk appetite was not severely dented as optimism surrounding U.S.-Iran diplomatic efforts continued to ease fears of a major disruption to Middle East energy supplies. 

With the payrolls report due later in the day, traders largely stayed on the sidelines, awaiting fresh signals on the Federal Reserve’s next policy move. 

European Markets Extend Record-Breaking Rally 

European equities outperformed their global peers on Thursday, with the benchmark STOXX 600 index advancing 0.2%to register another record closing high. 

The rally was fuelled by encouraging corporate earnings and growing optimism that improving relations between Washington and Tehran could reduce tensions around the Strait of Hormuz, a key global oil shipping route. 

A resilient earnings season has also strengthened confidence in European companies despite an uncertain macroeconomic backdrop. 

Among notable gainers, Deutsche Telekom climbed after unveiling a larger share buyback programme, while advertising major WPP rose following its quarterly earnings. Hikma Pharmaceuticals also advanced after reporting better-than-expected results. 

However, losses in industrial giant Siemens and defence company Rheinmetall capped the broader market’s gains. 

Source

• Exchanges