Pre-Open Points To Positive Start After Losing Streak Even As Oil Continues To Boil

Mumbai, September 3: Indian shares rose at pre open pointing to a positive start for benchmarks after a three session slide even as oil prices continue to stay elevated from tensions in the Middle East. 

Nifty 50 rose 0.3% and Sensex advanced 0.2% at pre open.   

Indian equities have remained under pressure, with the Nifty and Sensex losing roughly 1% each over the last three sessions as a combination of higher crude oil prices and rising global bond yields weighed on sentiment.  

Foreign institutional investors were net buyers of Indian equities on Wednesday, pumping in Rs 6,688 crore, while domestic institutional investors bought shares worth Rs 2,813 crore, provisional NSE data showed.  

Spotlight will fall on Hexaware Technologies which has named Vivek Jetley, a senior executive at Nasdaq-listed EXL, as its new chief executive officer.  

MSCI will remove Swiggy from its Global Standard and Mid Cap indexes from September 7, potentially affecting passive fund flows into the food-delivery company.  

Inox Wind has won a repeat turnkey contract worth Rs 755 crore from Indian Oil Corporation. 

Asian Markets Rise 

Asian stocks advanced in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.7%. Japan’s Nikkei rose 0.2% as a retreat in global bond yields offered some relief to risk assets. 

The yen strengthened 0.07% to 158.59 per dollar after jumping 0.9% in the previous session. Japan’s 30-year government bond yield fell 10 basis points to 4.065% ahead of a closely watched government debt auction. 

Hong Kong’s Hang Seng was up 0.2%, while investors remained wary of the impact of elevated energy prices on inflation and the interest-rate outlook. 

Wall Street Recovers After Three-Day Slide 

U.S. stocks rebounded overnight following three consecutive sessions of losses. The Dow Jones Industrial Average rose 0.56%, while the S&P 500 gained 0.46% and the Nasdaq Composite advanced 0.45%. 

Technology stocks led the recovery, with Nvidia climbing 3.2%, while Micron and Qualcomm gained 2.4% and 2%, respectively. Dell jumped 15.8% after raising its annual revenue and profit forecasts. 

The recovery in U.S. technology stocks could provide some support to Indian IT shares at the open. 

Oil Prices Remain A Key Risk 

Crude oil prices stayed elevated amid renewed uncertainty over the U.S.-Iran conflict. Brent crude was around $95.55 a barrel, while U.S. West Texas Intermediate crude stood at $91.14. 

The latest escalation has raised concerns over potential disruptions to energy supplies and the prospect of oil prices remaining elevated for longer. 

For India, which relies heavily on crude imports, sustained oil prices at current levels could add pressure on inflation, the rupee and corporate margins, particularly for oil-sensitive sectors. 

Fed Bets, U.S. Jobs Data In Focus 

Investors are also awaiting Friday’s U.S. payrolls report for clues on the Federal Reserve’s policy path. Weaker-than-expected private-sector employment data has strengthened expectations of a rate cut this month, with traders pricing in roughly a two-thirds probability of a 25-basis-point reduction. 

A weak jobs report could reinforce expectations of monetary easing and support emerging-market assets. Conversely, stronger employment data could push Treasury yields and the dollar higher, potentially weighing on risk appetite. 

Source

•  Exchanges